Bitcoin continues to plummet
On CoinDesk at 6 am (Vietnam time), price Bitcoin trading at $35,382, down 1.8% from 24 hours ago, causing each virtual currency to drop more than $688.
During this time period, the world’s most popular and valuable cryptocurrency traded as low as $34,808 and as high as $36,114.
Bitcoin price continues to decline. (Image: Getty Images)
CoinMarketCap data shows that Bitcoin trading volume during this period is around $22.6 billion, with market capitalization at $667.4 billion.
On the Vicuta floor, an exchange that is interested by many Vietnamese, the buying price of Bitcoin fell to VND 827 million, while the selling price was also pushed to VND 866 million.
Bitcoin plunges, leading to a decline in the price of a number of other cryptocurrencies. In the last 24 hours, Ethereum lost 2.69%, Binance Coin lost 3.8%, Ripple lost 3.89%, Cardano lost 3.15%, Terra lost 12%…
The steep drop in the top cryptocurrencies caused the total market capitalization to “evaporate” more than 3.4% to $1.6 trillion, the lowest level since the beginning of the year.
Analysts believe that the Bitcoin price is negatively affected by the massive sell-off in US technology stocks, in the context that the US Federal Reserve (FED) has just raised interest rates by 0.5 points. percent and started reducing balance sheet size from June 2022.
The Fed is expected to raise interest rates more aggressively. Rising interest rates could drive money away from riskier assets like tech stocks and cryptocurrencies.
In the last few months, the price of Bitcoin has been tied to the rise and fall of US stocks. This is due to the fact that China banned Bitcoin mining, leading the world market to flock to the US. Besides, in the context of general economic instability, Bitcoin price is also affected along with the market.
The fact that Bitcoin is tied to the US economy will limit its potential, according to an analysis on CoinMarketCap. Investors are viewing Bitcoin as a technology stock, making investment sentiment to be correlated with the stock market.
Previously, Wall Street’s acceptance of Bitcoin made the digital currency more easily tied to the stock indexes of the world’s largest economy.
The fact that Bitcoin depends on the up and down momentum of the electronic board makes the increase of this digital currency limited, it is difficult to break out like in the previous period.
Therefore, the Bitcoin price is unlikely to reach the $100,000 mark as many analysts expect. In addition, this currency is also unlikely to become a hedge against inflation if it continues to have close ties with the US financial system.
In fact, the trend of selling off risky assets is widespread, causing the crypto market to take a big hit. According to data from information platform Coinglass, over $407 million was liquidated in just 24 hours as Bitcoin fell to a 4-month low.
In addition, the impact of the COVID-19 epidemic and the tension from the Russia-Ukraine war also negatively impacted the global cryptocurrency market.
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