Bitcoin Price Drop: Why did bitcoin and crypto price drop?

CRYPTOCURRENCY have seen prices plummet as the slide continues in several major currencies in recent days.

Ethereum, Binance BNB, Solarium, Cardano Y XRP They are among the worst hit, with $ 2.1 trillion of lost value in the crypto market.

What are the price drops of cryptocurrencies?

Several main CRYPTOCURRENCY they saw their values ​​fall rapidly during the last 24 hours.

Bitcoin It was worth $ 43,058.75 on Thursday morning, but fell to a low of $ 42,496 on Friday.

That constitutes a 40 percent drop from its all-time high set in November at nearly $ 70,000, with a downward trend now accelerating even further.

Similary, Ethereum fell 12 percent to $ 3,411.92 and Solarium fell 12% to $ 148.58.

What is causing the price drops of bitcoins and cryptocurrencies?

One of the main factors is that the Federal Reserve has hinted that there could be a possible rapid rise in interest rates this year.

The minutes of a meeting of officials in December discussed the possibility of reducing the balance sheet of $ 8.3 trillion.

That led to massive sales in both stock markets and crypto, with the Nasdaq shedding more than three percent in its steepest drop since March.

With rising interest rates, volatile investments like CRYPTOCURRENCY they become less attractive compared to government bonds due to the low levels of income generated.

These factors, combined with the general market uncertainty caused by the Omicron variant of COVID-19, have generated great uncertainty.

It adds to current concerns about the risk involved in CRYPTOCURRENCY, Y bitcoin in particular.

Many short-term holders viewing these reports will sell quickly and instead invest in government bonds, rather than CRYPTOCURRENCY.


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