Bitcoin, the most popular cryptocurrency on the market, reached $20,087.90 at its lowest price this Wednesday and after the close of Wall Street it fell 1.42% after more than a week in free fall.
This decentralized digital currency created in 2009 recovered slightly after the US Federal Reserve (Fed) announced a rise in the official interest rate of 0.75 points, the largest increase in 28 years, to fight against inflation runaway
bitcoin won $1,500 while Fed Chairman Jerome Powell He was holding a press conference, in which he did not mention the latest cryptocurrency crash, after announcing the rate hike, according to MarketWatch.
But at the end of the conference, at 3:28 p.m. local time (7:28 p.m. GMT), bitcoin fell 0.85%, to $21,949.72 and one hour later, after the Wall Street closeaccelerated the decline to $21,571.29, according to Coin Desk.
Since Monday, June 6, the cryptocurrency has fallen by almost $10,000 and its value has fallen by more than half since the beginning of the year, according to that portal specializing in bitcoin and digital currencies.
This cryptocurrency has registered a downward trend since the beginning of the year that was accentuated in May with the collapse of the "stablecoin" (stable cryptocurrency) terraUSD and the luna cryptocurrency.
After these losses, bitcoin remained stagnant for almost a month around $30,000 until registering further declines that began earlier this month.
Experts explain that these falls are due to the tightening of the monetary policies of the central banks to control the high inflationand to the news of several companies in the sector, which are taking measures to avoid losses.
Last Monday, cryptocurrency trading and lending platform Celsius Network suspended all withdrawals, trades, and transfers between accounts as a result of the "extreme conditions" From the market.
In this line, the popular exchange company cryptocurrencies Coinbase announced yesterday that it will reduce 18% of its workforce with the dismissal of 1,100 workers.
"The tide has turned and we are seeing that many of these companies and platforms rested on unstable and unsustainable foundations."Lee Reiners, a former Federal Reserve official who teaches at Duke University Law School, told The New York Times.
For his part, the expert analyst in crypto assets from the multi-asset investment platform eToro, Simon Peters, considers that the loss in value that cryptocurrencies have experienced in recent days is due to the US inflation data, which rebounded in May above expectations and reached 8.6%.
Experts point out that the rate hikes by central banks have influenced the cryptocurrency quote. Bitcoin has fallen 45% since the last Federal Reserve (Fed) rate hike on May 4.
"Rising interest rates and bond yields have weighed on US equity market valuations and crypto assets"says Peters, who argues that cryptocurrencies have behaved in recent months like traditional stock markets and their valuations have been affected by this rise.
XTB analyst Darío García points out that the Bitcoin crash has been weighed by Celsius Network’s decision to suspend all transactions between clients and the withdrawal of capital from its platform, which caused this cryptocurrency lost 15% on Monday.
The cryptocurrency exchange platform Binance temporarily suspended the withdrawal of money to update its systems, which added to Coinbase’s decision to cut its staff has negatively affected the market and "has caused panic among investors"Garcia explains.
The spokesman for Bit2Me, Javier Pastor, believes that the market has entered "panic" and explains that users are withdrawing their funds from the platforms to obtain liquidity.
