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Cryptocurrencies tumble: Bitcoin and Ether fall with BTC below $36,000 and ETH below $2,500.



bitcoin crisis

The fall in cryptocurrency prices is related to the Federal Reserve’s decision to withdraw stimulus funds from the market.

In what is an unexpected turnaround from previous predictions, the cryptocurrency market has experienced a major price crash, comparable to that of 2021, with Bitcoin and Ether topping the list of losers.

At the beginning of the year, predictions placed Bitcoin on the path to $100,000, which excited many investors. However, after the worst possible start to the year, BTC has fallen about 16.7% in the last week and looks set for a bigger loss. After peaking at $68,000 in November, the bitcoin price is now below $36,000.

In a similar vein, Ether has plummeted around 20% and now stands at $2,500, while several meme currencies have suffered the same fate. The overall decline has led to a loss of more than $1 trillion across the entire cryptocurrency market.

US Federal Reserve to blame for the crisis.

The fall in the market price of these currencies is largely due to the Federal Reserve’s decision to withdraw stimulus funds from the market. Fed Chairman Jerome Powell had last week declared aggressive measures to combat rising inflation. The Fed announced its decision to accelerate bond purchases and raise interest rates.

What is interesting is that cryptocurrency prices have reacted in the same way as stocks. This is especially important as bitcoin advocates push bitcoin as a way to hedge against inflation. FRNT Financial CEO and co-founder Stéphane Ouellette said:” Cryptocurrencies are reacting to the same kind of dynamics weighing on risk assets globally.

A lire aussi :   Bitcoin, victime ou auteur de la pègre?

Price slump may not be over

Bitcoin is already back to where it was at the same time in 2021. However, some experts suggest that the pullback may not be over.

With increasing regulatory measures on cryptocurrencies, the price drop is expected to continue. Recently, Russia proposed to ban cryptocurrency mining in the country. The proposal claimed that the digital currency constituted ” a risk to the country’s financial stability and the sovereignty of its monetary policy.

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