Bitcoin price has dropped below $35,000 – the lowest level since July last year, amid a market crash due to a series of cryptocurrencies plummeting without brakes. At the time of writing, BTC is changing hands at the dollar level
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price ‘burned up’, hundreds of billions of dollars were blown away
Since the beginning of the new year until now, Bitcoin has continuously gone down, the downward momentum shows no sign of stopping. Over the past 24 hours, the Bitcoin price traded as low as $34,064, the highest recorded at $36,810.
According to analysts, the US Federal Reserve (Fed)’s intention to withdraw stimulus measures from the market has strongly affected risk assets globally. That is the main reason why Bitcoin constantly makes new bottoms.
Recent developments suggest that the cryptocurrency market is almost like a security. Nexo co-founder Antoni Trenchev says the correlation between Bitcoin and the Nasdaq 100 index is at a near-decade high.
Another risk for Bitcoin is the Federal Open Market Committee (FOMC) policy meeting next week. The FOMC is the monetary policy-making body of the Fed. FOMC decisions will affect interest rates and economic variables.
At the same time, the news that the Central Bank of Russia proposed to ban the use and mining of virtual currencies on the territory of this country, citing concerns about threats to financial stability, also contributed to Bitcoin’s decline. reduction.
Total market capitalization was down by 5.2%, or hundreds of billions of dollars evaporated, now at 1.6 trillion dollars.
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