Macroeconomic Conditions and Terra Plague Bitcoin Price

There are two factors that have plagued the Bitcoin price in recent weeks. In the first instance, macroeconomic conditions play a major role. Countries worldwide have to contend with far too high inflation. As a result, central banks have to step in and raise interest rates drastically to fight inflation. A higher interest rate means that the financing costs for individuals and companies go up and that has a depressing effect on the economy.

Unfortunately, Bitcoin has not yet managed to escape the resentment of the global economy. In addition, you probably have not noticed that the Terra ecosystem has collapsed. First, the UST stablecoin lost its peg to the US dollar and Terra had to sell their Bitcoin reserves. That, combined with the panic surrounding the protocol, caused an overall crash in the market.

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