The price of bitcoin BTC fell to its lowest weekly decline since May, with the value of the world’s largest cryptocurrency by market capitalization declining below $60,000.
At press time, the price was around $58,000, down 11.5% from Sunday night and following a broad sell-off in cryptocurrency markets.
The value of Ethereum (ETH) fell below $4,000 for the first time since late October.
Traders struggled to explain the most recent drops, but they acknowledged that the market appears to be weaker than it was last week, when the bitcoin price rose to an all-time high near $69,000.
“Bears will be gaining in confidence,” Matt Blom, head of sales and trading at Eqonex, observed in a newsletter Thursday. “Their year-long persistent hacking of lower levels has thus far failed to pay off, but one that is only $58,850 below will boost their optimism and prices will drop to $56,670.”
According to analysts, US President Joe Biden has revealed about his plans to name his nominee for Federal Reserve chair in the coming days.
Analysts are comparing the two frontrunners, current Chair Jerome Powell and Fed Governor Lael Brainard, to see who would be better for the crypto industry.
The following are some of the factors that should be considered: how they plan on combating rapidly rising inflation and how quickly the US central band rolls out a digital version of the dollar.
Sotheby’s is also holding a sale on Thursday evening (U.S. time), with a decentralized autonomous organization (DAO) raising $27 million to compete for one of the last genuine copies of the United States Constitution still in private hands.
If there is no visible shift in trader sentiment, the event will undoubtedly produce yuks and perhaps gasps.
The tone in crypto markets was drastically different from that in conventional markets, where the Standard & Poor’s 500 Index of large US stocks hit a new high.
Even while concerns mounted among economists that inflation, which is now at its highest level in three decades, might force the Federal Reserve to speed up interest-rate increases next year to keep the economy from overheating, technology stocks fueled the gains.
The Fed’s rate hikes are likely to have a negative influence on bitcoin, since they are expected to make risky assets, such as equities and cryptocurrencies, less appealing.