Investors sold cryptocurrencies in droves yesterday, taking risks amid uncertainty over the direction of the U.S. Federal Reserve’s (Fed) monetary policy and concerns about the Chinese economy.
The downturn in the crypto market was swift. As a result, the market capitalization of cryptocurrencies fell in tens of billions in just a few minutes.
Bitcoin fell 10.0% today to $20,870.36.
Experts say the sharp drop is a sign of the end of the bitcoin bull market after the price surpassed $69,000 in November 2021.
Bitcoin surpassed $25,000 on Monday, the first time it has done so since June following the release of lower-than-expected inflation figures from the US. This calmed investor concerns about the Fed’s accelerated rate hikes.
Bitcoin and cryptocurrencies slumped while investors lack confidence in the direction of the Fed’s monetary policy. Fed officials continue to advocate raising interest rates to curb inflation ahead of the Fed’s annual meeting in Jackson Hole, Wyoming, Aug. 25-27.
In addition, investors are worried about the Chinese economy. Li Keqiang, the Chinese Premier, admitted that China is in the most difficult situation to stabilize its economy.
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Saturday, August 20, 2022