The prices of Bitcoin and the cryptocurrencies They continue their decline, with bitcoin briefly bottoming out just above $ 41,000. This is bitcoin’s worst weekly drop since November. The world’s number one cryptocurrency has now lost 37% of its value from the peak of $ 58,000.
The rest of the crypto market is giving in to selling pressure. Today, the price of Ethereum fell by 3.16%, the currency of Binance fell by 1.44% and the price of Solarium it sank 4.44%.
There are two main narratives that explain what is happening to cryptocurrency prices.
First, the Fed took a quick U-turn in its policy to control inflation: “Last March, the Fed pledged not to raise rates until 2024. Today, its officials planned three rate hikes for this year alone. . And the market sees a great possibility that the first hike will come at the next Fed meeting in March. “
Rate hikes don’t bode well for bitcoin because its sample price behaves more like a tech stock than a safe-haven asset. And it is the technology stocks that are most affected by the increase in rates.
Look at the full note here!