Bitcoin opened the week with a significant drop
This Monday again the value of Bitcoin fell significantly, which represents the worst start to the year in its history. As reported by journalist Emily Graffeo from the portal bloomberglinea.com.
The cryptocurrency opened the week with a 3,7% drop, which meant that its value stood at $40.766.
During the first 10 days of the year 2022, Bitcoin has had a loss of %12, which is the biggest decline in at least 10 years.
Causes of the decline in the value of Bitcoin
Jayu Hatfield, CEO of the company Infrastructure Capital Advisors, indicated that one of the reasons why the price of the cryptocurrency has fallen is due to the new policies implemented by the Federal Reserve Board, which is the central bank of the United States. (The Fed, for its acronym in English).
“Cryptocurrencies are likely to remain under pressure as the Fed scales back its liquidity injections,” said Jay Hatfield, CEO of Infrastructure Capital Advisors.
#Bitcoin $BTC Make or break situation @ the critical $40K level IMO. The previous H&S formation resulted in a bounce. Let's see what happens! pic.twitter.com/kcGLOlWu8f
— Jake Sandhu (@JakeSandhu0) January 10, 2022
He further indicated that if the market continues to behave this way, the 2022 close for the cryptocurrency will be significant.
“Bitcoin could end 2022 below US$20.000,” the economists pointed out.
Covid-19 pandemic helped boost cryptocurrency
Experts indicated that during the confinement as a result of the Covid-19 pandemic, in the United States it helped Bitcoin to have a significant rise.
But as the Federal Reserve has become more demanding, riskier assets like stocks and digital assets have taken a hit.
Experts indicated that Bitcoin's decline seems to be driven more by short-term traders of the cryptocurrency than by long-term forks that could be generated.
Author: Daniel Parra 10:20 am