Investigate the reasons for the fall of Bitcoin yesterday; Prices are still influenced by other markets

Bitcoin and the digital currency market have failed to maintain last week’s uptrend, most notably due to macroeconomic factors, such as correlations with the stock market index. However, the Fed’s monetary policy has also greatly affected the downturn in the market.

To Report Bitcoin Desk, the largest digital currency in terms of market value, traded at around $ 39,000 at the time of writing and has fallen below $ 40,000 for the first time since Monday. At the same time, the global stock market is declining due to the war in Ukraine.

Bitcoin experienced a volatile trend last week, and the volume of buying orders also increased due to the jump from Monday to Wednesday, which raised the price from $ 38,000 to above $ 45,000. However, the bitcoin correlation with the stock market, which had almost disappeared in recent days, rose again yesterday and the price began to fall in line with the global stock market.

The stock market index shows that the Nasdaq index (NASDQ) fell another 2% on Friday and the “S & P500” index fell 1%. The performance of stock markets in Europe has been much worse, with the Dex index (DAX), which tracks the status of the 30 major companies on the Frankfurt Stock Exchange, at 4.4 percent, the French stock market index at CAC 40, 5 percent and the stock market. Italy fell more than 6 percent.

US Federal Reserve Chairman Jerome Powell said on Tuesday that bank interest rates would rise 0.25 percent by the end of this month (early April), despite concerns about the economic impact of the Russia-Ukraine war. The US Federal Reserve did not need more reasons to implement contractionary monetary policy, but yesterday’s report on the employment situation in the country provided a good excuse for the Federal Reserve. These data show that contrary to expectations, in February (February), instead of 400,000 jobs, which experts predicted, 678,000 jobs were created in the United States.

Bloomberg’s report on Friday added that the Biden administration was considering banning oil imports from Russia. This helped boost oil prices; West Texas Intermediate (WTI) was up 7.1 percent at $ 115.35 a barrel.