The world’s most popular cryptocurrency is compounding its losses and is trading at $ 21,200 after hitting $ 20,000. REUTERS / Benoit Tessier / photo file
Bitcoin price falls again this Wednesday, it’s the ninth consecutive day of declines, which brought the token to the brink of $ 20,000. The cryptocurrency fell nearly 9% this Wednesday and hit a low of US $ 20,081.95. although it now reduces those losses to nearly 5%.
This is the longest black stripe since 2014. Ether was poised to break out of the $ 1,000 mark after a 10% drop, albeit now also cuts red and loses 7.63%
A market that began to decline at the end of last given year expectations of a more restrictive monetary policy is now showing signs of widespread panic, following the collapse of the Terra blockchain last month and the recent decision by Celsius Network and Binance to stop withdrawals.
“What we are seeing now are weak hands exiting the market as we remove the excess of what, in hindsight, can only be seen as an excessive build-up of speculation and leverage “, said Mati Greenspan, founder of Quantum Economics.
Bitcoin has its lowest value in 18 months and, in the local morning, is selling for 21,193 US dollars, a drop of more than 4% from Tuesday and It lost more than $ 10,000 in its price in just one week.
According to specialists, the central fear is a rise in interest rates in the United States, the Federal Reserve’s verdict on the matter will be released this Wednesday, and a recession following the release of inflation data last Friday.
What happens in El Salvador: Bukele bets on bitcoin as legal tender
The bet by the president of El Salvador for bitcoin is going through a difficult time. Salvadorans seek refuge in the dollar.
In September 2021, Nayib Bukele made El Salvador, a country whose public debt is around 90% of its GDP, the first country to accept the most popular cryptocurrency. as legal tender at par with the dollar. So one bitcoin was around $ 44,000.
Then it skyrocketed to $ 66,000, and Bukele took advantage of the profit to build a public vet. He also announced the construction of a Bitcoin City that would run on thermal energy from the Conchagua volcano.
Now, the recent collapse raises doubts about its effects in the Central American country. Situation that worsens given the stagnation in negotiations with the International Monetary Fund for a loan of 1,300 million dollars that will allow it to clean up its coffers.
Given the current turbulence, some businesses in downtown San Salvador have already removed the signs of “bitcoin accepted”.
YN
Source: Clarin
