Bitcoin has lost half its value since its all-time high | Photo credit: Shutterstock
Bitcoin continues to slide as monetary policy is expected to become more aggressive in the United States. As often, it takes other cryptocurrencies with it.
If it pitches on the equity markets, we are sinking on the cryptocurrency market. The prospect of a normalization of US Federal Reserve policy has dealt bitcoin a serious blow. After plunging around 11% on Friday, the price of the queen of cryptocurrencies continued to sink into the abyss over the weekend and again on Monday, to trade around 34,000 dollars. Ethereum, the second cryptocurrency in terms of valuation, is not much better off, its price having fallen from just over 3,000 dollars on Thursday January 20 to 2,270 dollars on Monday, a drop of 26%.
This spectacular fall follows a surge that is just as spectacular. Over the past two years, bitcoin has more than quadrupled, reaching a record high of $68,991.85 on November 10. Since that date, it has lost 50% of its value. Ethereum drops in similar proportions. In fact, the entire cryptocurrency sphere is navigating in troubled waters, from solana to cardano.
The widespread selling pressure comes on the heels of the tumble of tech giants on Wall Street, which are panicking as major central banks, led by the Fed, sound the death knell for free money. . A rise in key rates will undeniably deal a blow to growth stocks, whose financing needs are the highest. ” We don’t think it’s a bad thing if market volatility takes some of the air out of the most speculative assets “, Estimates Mark Haefele, head of investments at UBS Global Wealth Management, quoted by Bloomberg. For Chris Weston, at Pepperstone Financial, the sector is “ overvalued, but momentum is bearish “. However, this fall could be taken advantage of by some investors to position themselves cheaply.