Bitcoin’s historic fall near $ 20,000; What was the cause?
Bitcoin has experienced its biggest drop in a year in the last 24 hours, and the downturn comes as a sharp recovery in the digital currency market has hurt some of the industry’s largest businesses and left investors more worried than ever. The future has active projects in this field; But what happened overnight yesterday that caused such a huge drop in the market?
To Report Coin Desk, Bitcoin is currently trading at around $ 22,000; But in the last few hours, the price of this digital currency has dropped to $ 20,800 for a while. Bitcoin has lost 15 percent of its value in these bloody 24 hours, and the price of Atrium, the market’s second-largest currency, has now fallen to $ 1,170, with Bitcoin falling as much.
The overnight fall of the digital currency market is largely due to the strange decision of the managers of the Celsius lending platform. The digital currency lending platform, which is said to hold about $ 3.5 billion in bitcoins, abruptly suspended users’ withdrawals yesterday.
The events of the last 24 hours all point to the same thing; That the digital currency market is deteriorating rapidly.
Yesterday, for the first time since the beginning of 2021, the total value of the digital currency market fell below $ 1 trillion, and at the same time, tokens such as the Dodge Quinn and Theron experienced sharp declines. The value of the shares of Micro Strategy Company, which is now one of the largest corporate investors in Bitcoin, has fallen by 25% in the last 24 hours due to falling prices.
Bainance, the world’s largest digital currency exchange, temporarily stopped bitcoin withdrawals for several hours yesterday due to a technical defect. Crypto.com (Exchange) and the BlockFi lending platform have also announced plans to cut a significant portion of their staff soon. Despite all these disturbing events, the price of Theron’s algorithm stable stable, the USDD, fell to $ 0.91 at some point.
“The sentiment in the digital currency market is very bad right now,” said Edward Moya, senior analyst at Oanda Brokerage.
Bitcoin is now trying to find support and stabilize its price; But if market fluctuations continue to cause prices to fall below $ 20,000, the situation will be even worse.
The sharp decline in the digital currency market has come at a time when investors in traditional financial markets have also been hit hard by falling prices. For example, the S & P500 stock index fell 4% in the last 24 hours and is now at its lowest level in a year. The main driver of this decline, however, is the re-emergence of investors’ fear that the US Federal Reserve has no choice but to tighten contractionary monetary policy to counter rampant inflation in the country; Inflation that has now reached its highest level in four decades.
The US Federal Reserve will hold a meeting today and tomorrow on its monetary policy, the outcome of which will be announced tomorrow during a press conference. Naturally, the outcome of this meeting can affect the foreign exchange market in the current sensitive situation.