Bitcoin price: How much and why has the cryptocurrency gone down?
Bitcoin price has been declining since November. During the last week, the cryptocurrency’s also declined and reports say it was caused by the new US regulation of digital assets.
Today’s price of Bitcoin is 50% below its November high. From $69,000 in November, Bitcoin crushed its price value to $32,951 last week.
Diverse cryptocurrencies have lost considerable value. For example, Ethereum, common crypto used by NFT collectors is at its lowest point since July.
Ethreum dropped almost $1,000 in value in January.
Main reasons
The Biden administration is trying to develop a strategy to regulate cryptos due to national security challenges posed by Bitcoin.
The Federal Government actions began a massive campaign for traders to sell their Bitcoin holdings.
The Bitcoin prices are also affected by US Federal Reserve’s policy changes.
Jerome Powell, Federal Reserve Chair, said the Federal Open Market Committee will increase the double monthly rate, reducing asset purchases.
The Federal Reserve took those measures to control inflation and the negative impact on the prices of Bitcoin.
Also, geopolitical conflicts can alter the market in negative ways. Also, geopolitical conflicts can alter the market in negative ways. Ukraine and Russia are accumulating vast tensions worldwide.
Alexander Mamasidiov, co-founder of the mobile digital bank MinePlex, told The Independent “many investors in the digital currency ecosystem are likely to start betting on more safe assets, thereby pulling funds away from crypto. Since the growth trend is now highly correlated with the stock market, any signs of potential recovery will be hinged on a wider correction in the stock market,”
