The cryptocurrency today adds its eighth consecutive session down, although the biggest losses were recorded the day before, when it plummeted 15%. That happened after it was learned that the cryptocurrency trading and lending platform Celsius Network suspended all withdrawals, exchanges and transfers between accounts as a result of “extreme conditions” in the market.
However, experts recall that since last Friday, when the US inflation data was released, which surprised on the upside, Bitcoin fell sharply.
In this sense, the IG analyst Sergio Ávila assures that inflation in the US, which rose to 8.6% in May, higher than expected, “It causes the market to discount more aggressive increases in central bank interest rates and puts pressure on the US Federal Reserve (Fed) to increase its rates further.”
“The rises in interest rates negatively affect technology, all sectors that have to do with growth and, of course, cryptocurrencies, which are conditioned in the same way,” Ávila pointed out. Since the last increase in interest rates announced by the Fed, on May 4, bitcoin has lost 40% of its value.
Likewise, the value of this cryptocurrency is reduced by 50.6% in the year and by about 66% from the historical maximums that it reached last November, when it touched $69,000.
“The worst may be yet to come,” said Craig Erlam, an analyst at Oanda. “Market conditions were already far from optimal – severe risk aversion and higher interest rate expectations – but add a major crypto lender freezing withdrawals and it really is the perfect storm.” “Confidence in the cryptocurrency market has already been hit this year by the Terra debacle, and this is another big blow. Suddenly $20,000 looks extremely vulnerable for the digital currency,” warned.
From the point of view of technical analysis, “it almost certainly seems that we could end up seeing an extension of the falls to the level of 19,980 dollars”, commented César Nuez, an analyst at Bolsamanía.
“Ethereum should stay around $1,000 and is currently at $1,200. Bitcoin should stop around $20,000, $21,000 and it’s at $23,000, so you’re much closer to the bottom in crypto than I think, stocks, they’re going to have another 15% to 20% decline,” concluded Michael Novogratz, founder of Galaxy Investment at the Financial Conference of Morgan Stanley.
More cryptocurrency news
Crypto crash: Ethereum falls to 2018 lows and cryptocurrencies can no longer find a floor
“Zero or a million”: the revealing forecast of a cryptocurrency guru on the price of Bitcoin
His father abandoned him, he learned to mine cryptocurrencies with a borrowed PC and managed to build his house
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
