In the last day, the cryptocurrency market has lost $ 140 billion, the data of the Coinmarketcap site is evidenced. The largest digital currency, Bitcoin, lost 6.3 percent per day, at the moment up to 33.2 thousand dollars behind the coin – this is the minimum from July 2021. Cryptocurrency falls against the background of reducing the value of shares of the largest technological companies.
As of 16:32 MSK Bitcoin trades at 33.57 thousand dollars. For a week, the currency lost more than 9,000 dollars in price. The cost of the second on capitalization of the digital asset, ether, on January 24 decreased by as much as 11 percent – at the time of writing news one coin costs $ 2220.
The cryptonock falls together with the stock market, which has just experienced the worse week from March 2020. Investors sell risky assets, such as technological promotions, since the US Federal Reserve (Fed) announced the upcoming tightening of monetary policy and a repeated increase in the key rate. More attractive for depositors have now become reliable treasury bonds of the United States, the yield of which in early January exceeded 1.8 percent for the first time since the beginning of the pandemic.
There are other factors affecting the cryprotes, and one of them is growing inflation in key economies in the world. Investors for a long time considered Bitcoin as a better means of protection against inflation, but this theory has not yet been confirmed. Analysts surveyed by CNBC predict the negative impact of the tightening of the Fed monetary policy for the value of cryptocurrency. In addition, digital currency holders are worried about the market for regulating the cryptocurrency market, which many countries have abused.
For example, the Central Bank of Russia proposed to ban cryptocurrency in the country. On November 20, the regulator published a report in which the risks of the use of digital assets in Russia and proposed to prohibit their turnover and release in the country. Bloomberg wrote that the head of the Central Bank Elvira Nabiullin pushed the Federal Security Service (FSB) to this decision, but this information was refuted in the State Duma. The deputies added that the position of the Central Bank on the question of cryptocurrency is “the most tough of all”, and in the State Duma and the government does not yet support it – there is a need for further discussion.