Bitcoin’s downtrend continues. As of 9 a.m. local time on the Binance Exchange, the price of Bitcoin was recorded at $35,077. It was down 3.9% compared to the same time the day before. Bitcoin’s price is now approaching half of its $69,000 peak in November last year. As Bitcoin’s plunge continues over the weekend, fears are growing in the market.
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Cryptocurrencies have shown great volatility as the Federal Reserve (Fed) heralds an aggressive tightening policy. This is because liquidity, which has led to the boom of the cryptocurrency market, can be severely damaged. As the Fed’s tightening is expected to continue, the price of risky assets continues to fall in the market.
The New York Stock Exchange also fell sharply on the 21st (local time), freezing investor sentiment. The S&P 500 and Nasdaq indexes posted their biggest weekly declines since March 2020.
Edward Moya, senior market analyst at Oanda, pointed out that Bitcoin’s decline is “a group of participants in the cryptocurrency market trying to reduce their risky assets after the stocks plummeted.” Market vigilance is heightened ahead of the Fed’s Federal Open Market Committee (FOMC).
In the market, Ethereum and related cryptocurrencies also recorded a sharp decline.
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- Yoon Eun-sook
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