Bitcoin is plummeting in price
The cryptocurrency Bitcoin fell for a fifth straight day and dipped below $22,000 as investors weighed mixed signals from the Federal Reserve on the pace of rate hikes.
This is reported by Bloomberg.
The largest cryptocurrency fell 13% to $20,877.55, the lowest level in the last 7 days. The second largest cryptocurrency, Ether, has fallen by 17% in 7 days. Assets like Polygon, Solana, and Avalanche all fell 20% or more in a week.
“The momentum that brought Bitcoin back to the $25k price point has lost its driving force and this may start to put more pressure on the price of Bitcoin. A move below $22,500 could signal that the price rally is over for now,” Oanda Senior Market Analyst Craig Erlam said.
Cryptocurrencies have taken a significant hit in value this year as the Fed quickly raised rates amid high inflation. As a result, risk assets like stocks of tech giants have struggled.
Since December 31st, the value of Bitcoin and Ether has fallen by about 50%. Nevertheless, they rose from their worst levels in mid-June amid optimism that inflation may soon peak and begin to slow.
