Bitcoin reached a floor of US $ 30,000 and erased gains in 2022

Bitcoin briefly fell to $ 29,000 on Tuesday, an amount not yet reached by most well -known cryptocurrencies since July 2021. However, it quickly turned around, cutting losses, though still remaining. dropped 2.5% against Black Monday, to $ 32,000.

The current price is less than half of record close to $ 69,000 from November last year. Since Monday, the most popular digital currency has lost 6% and in the last 7 days it has lost 16%.

This decline indicates that most funds and people have invested in bitcoin in recent months they lose. This year, it has fallen by more than 30%.

Other cryptocurrencies are also not immune to the trend and the market as a whole is worth approximately $ 1.5 trillion compared to a level of $ 3 trillion invested during the sector’s heyday, according to data from Coingecko, which registers more than 13,000 cryptocurrencies.

The decline of the sector is associated with investor caution through fears related to the war in Ukraine, the lockdown in China and the adoption of a strict monetary policy in the United States.

This trend also affects technology company titlesthat performance benefited from expanding fiscal policies during the pandemic.

“The relationship of bitcoin to the Nasdaq”, the American stock index of technology companies “is at its highest”, featured by expert blockchain analysts of the Kaiko portal.

Due to the volatility of crypto assets it is it is difficult to project what the evolution of bitcoin will be.

In 2021, bitcoin temporarily fell below $ 30,000 in June and July, before rising again. hit all the time high in November at $ 69,000.

An indication of the importance of this sector is given by the fact that in recent years two countries, El Salvador and the Central African Republic, have adopted this currency as their official currency, despite harsh criticism from international financial organizations.

The president of El Salvador, Nayib Bukele, has declared the country took advantage of the decline to buy more cryptocurrencies, adding 500 units to your fund.

Since its creation in 2009, the cryptocurrency has been formed against the background of very low interest rates.

Today, the Fed warns of future rate increases to curb inflation.

“It is possible that there will be temporary rebounds, but as long as the yield on government bonds and the dollar continues to rise” because of the Fed’s determination, “even a stronger collapse is the main risk” for cryptocurrencies, warned Fawad Razaqzada, a City Index analyst.

Source: with information from the AFP