Business News Asia
The global market capitalization of cryptocurrencies lost more than $200 billion yesterday due to concerns about the U.S. Federal Reserve (Fed) rate hike and balance sheet cuts that will weigh on market liquidity.
This morning (June 14), the bitcoin price is down 16.16% and is hovering at $22,224.19.
Bitcoin is now down more than 60% since hitting a record high of $69,000 in November 2021.
According to Coinmarketcap.com, the market capitalization of all cryptocurrencies has fallen below the $1 trillion mark for the first time since February 2021.
The market capitalization of cryptocurrencies reached $2.9 trillion in November 2021, which is the highest level in history.
Bitcoin fell below $23,000 to its lowest level since December 2020 after the U.S. released the Consumer Price Index (CPI), which was higher than expected. This may prompt the Federal Reserve to raise interest rates at its meeting this week to curb inflation.
Investors are concerned that the Fed’s rate hike and balance sheet cuts could strain market liquidity and bring the U.S. economy to the brink of recession.
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Tuesday, June 14, 2022