For the fifth time in six days, the price of bitcoin It fell on Monday and was on its way to registering its worst start to the year since this digital money alternative began to circulate.
It is that during noon in Argentina, the original cryptocurrency was down more than 4%, which represents USD 39,800 in the New York operations. In this way, it already accumulates a loss of 12% so far in 2022.
This is the biggest decline for a start to the year since 2012. Minutes after it happened, it returned above USD 40,000. Meanwhile, Ether was down, while the Bloomberg Galaxy Crypto Index fell for a fourth day.
“It is likely that cryptocurrencies remain under pressure as the Fed reduces its liquidity injections, ”said Infrastructure Capital Advisors CEO Jay Hatfield. “Bitcoin could end 2022 below $ 20,000”added.
In turn, Hartfiel said: “The tightening of Fed policy affects not only interest rates, but also the premium of risk of equities as the Fed withdraws funds from capital markets. Riskier investments, such as unprofitable tech, meme stocks, and cryptocurrencies, are disproportionately affected relative to the rest of the market, since these investments are approximately twice more volatile than the market in general, so they have twice the risk premium than the average shares “.
From Bloomberg Intelligence they expressed that USD 40,000 is a level of technical support important for the digital token. “Cryptocurrencies are a good barometer of the current reduction in risk appetite, but bitcoin will end up coming out ahead as the world becomes more digital and the currency is the benchmark collateral,” they noted.
Bitcoin was created in the wake of the 2008 global financial crisis, by Satoshi Nakamoto. In 2009 it began trading and the price information for the first days is scarce.
During the COVID pandemic, this cryptocurrency became even more widespread as institutions and retail investors became involved in the crypto market and its ancillary projects.