This has not been the best year for cryptocurrencies, most of them have presented crashes of up to 99%, several massive thefts have been known through platforms dedicated to this market. Although bitcoin showed a rise in value last week, this week it leaves investors worried again, as it reached the lowest value since 2020.
Throughout the weekend and until this (Monday) morning more than 200,000 million dollars have vanished in the cryptocurrency sector. However, the one that is generating the most concern is the most famous digital currency: Bitcoin, which stood at $23,956 this morning. According to coinmarketcap.com at the time of writing, Bitcoin crashed 16.09%.
The last time Bitcoin had a similar value was at the end of 2020, when it closed at $21,444. Specialists attribute its fall to the inflation that marked last week in the United States. Looking at the picture, investors are scared by high inflation, which also affects the cryptocurrency sector. The truth is that so far in June, Bitcoin has lost about 25% of its value.
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“Since November 2021, sentiment has changed dramatically given the Fed’s rate hike and inflation management. We are also potentially facing a recession as the Fed may need to finally address the demand side to manage inflation,” Viyay Ayyar, vice president of international and corporate development at crypto exchange Luno, told CNBC.
Ayyar recalls that on other occasions bitcoin fell up to 80% from its last all-time high. On this occasion, from its maximum value reached in November, it has dropped about 63%. “We could see much lower bitcoin prices in the next one or two months,” Ayyar argues.