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Friday, November 8, 2024

“Bitcoin is in a vice” Why did the cryptocurrency fall in price?

The news about the confiscation of 540 BTC, the expectation of data on the growth of consumer prices in the United States and other reasons that could have influenced the depreciation of bitcoin to $44.4 thousand.

On the night of April 6, the bitcoin exchange rate on the Binance crypto exchange fell to $44.4 thousand, the first cryptocurrency is trading at $45.2 thousand, over the past day it has fallen in price by 3%. The market capitalization of the asset decreased to $860 billion.

The price of bitcoin is now influenced by the state of the US economy and expectations of the publication of data on consumer price growth in March. In February, this indicator was at the level of 7.9% – a record value for the United States in 40 years. In March, a correction in consumer price growth is expected, although inflation will remain at a high level – this is facilitated by the increase in fuel prices caused by the global crisis.

Crypto investors expect the growth of the bitcoin rate and prefer to freeze now: this is evidenced by the ongoing trend to withdraw bitcoins from crypto exchanges to third-party personal wallets where they are stored. This helps to maintain the bitcoin rate at the current level, preventing it from sinking heavily (lack of supply on the exchanges), the specialist emphasized.

“On the other hand, the success of American regulators in the fight against inflation is still unclear, and this limits the demand for such an instrument for hedging inflationary risks as bitcoin.

Thus, bitcoin was squeezed in a vice between holders and a lack of inflow of money due to the uncertainty associated with the inflation rate,”

Over the past 24 hours, the news about the arrest of the servers of the darknet resource Hydra, the confiscation of 540 bitcoin and sanctions against the Granted crypto exchange could have had a negative effect.

The confiscations themselves are not so significant for the entire crypto market, but these events confirm the general trend, the intensification of the struggle of the world financial authorities with little-controlled financial flows.

Hydra was an important global player in the forbidden financial services industry, and its closure would have far-reaching consequences for the entire cryptocurrency ecosystem. It is impossible to exclude the influence of these events on the current bitcoin rate, the specialist concluded.

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