By market value, Bitcoin is the world’s largest digital currency. Bitcoin fell to an intraday low of $32,650.02, its lowest level since July 2021, and was down 5% to $32,860.91 at around 7:12 a.m. ET, according to Coindesk data.
Bitcoin has continued to fall after a larger stock sell-off in the United States last week sent the cryptocurrency market into a frenzy, causing the cryptocurrency to fall by roughly 10%.
This year, the virtual currency has been trading in a narrow range as it attempts to reclaim its late-2021 highs.
The drop comes after the Dow Jones Industrial Average fell more than 1,000 points on Thursday, and the Nasdaq fell 5%. These losses were the worst in a single day since 2020. On Friday, the Dow and Nasdaq fell again.
It is now less than half its peak price of $68,990.90 in November 2021.
Meanwhile, the Federal Reserve raised its benchmark interest rate by half a percentage point on Wednesday in response to inflationary pressures.
The stock market rose after Fed Chair Jerome Powell stated that a 75-basis-point rate hike is not being considered. However, by Thursday, investors had wiped out the Fed rally’s gains.
“Overall markets continue to be pressured by inflation and growth concerns,” said Vijay Ayyar, vice president of corporate development and international at cryptocurrency exchange Luno.
He believes that if bitcoin falls below $30,000, it could fall as low as $25,000 before making a “significant” recovery.
According to CoinGecko.com data, the global market cap for cryptocurrencies was $1.68 trillion on Sunday, and cryptocurrency trading volume in the previous day was $119 billion.
A stablecoin is a digital currency whose value is linked to real-world assets. Stablecoin issuers frequently back their virtual currencies with other assets held in reserves. TerraUSD’s goal in this case is to be pegged to the US dollar.
Over the weekend, cryptocurrency investors were also on edge after the TerraUSD stablecoin briefly lost its dollar peg.
The Luna Foundation Guard, which is behind TerraUSD, has been stockpiling large amounts of bitcoin.
However, the TerraUSD price briefly fell below parity with the US dollar over the weekend before recovering. This has raised concerns that the Luna Foundation Guard may sell bitcoin to support TerraUSD.
“The crypto markets are also a little nervous after UST (Terra stablecoin) temporarily lost its peg over the weekend,” Ayyar explained.
#edgeforex #forextrading #forexsignals #forex #bitcoin #lowest #fed #stockmarket #selloff #stablecoin #cryptocurrency