The price of bitcoin has fallen below $35,000, its lowest level since last July. Ethereum and other altcoins fell along with BTC. BTC has lost 16.73% in the last 7 days and Ethereum has lost 23.75% in the same period. BTC is currently trading at $35,872. Among the top 10 cryptocurrencies by market capitalization, BNB has lost 22%, ADA 15.36%, SOL 30%, XRP 20%, LUNA 21% and DOGE 22% in the last 7 days.
Why is bitcoin falling?
The bitcoin price has been in free fall since the beginning of the new year and the downward movement is not going to stop. In the last 24 hours, the price of bitcoin has fallen to $34,064, and the high was recorded at $36,810.
According to analysts, the U.S. Federal Reserve’s (Fed) intention to cancel market stimulus measures has heavily impacted risky assets around the world. This is the main reason why BTC is “steadily falling to new lows.”
Recent events show that the cryptocurrency market is almost like a stock market. Nexo co-founder Anton Trenchev says the correlation between Bitcoin and the Nasdaq 100 Index is close to the decade’s peak.
Another risk for Bitcoin is next week’s Federal Open Market Committee (FOMC) policy meeting. The FOMC is the body that determines the Fed’s monetary policy. FOMC decisions will affect interest rates and economic variables.
At the same time, the Central Bank of Russia’s announcement of its concerns about threats to financial stability and a proposal to ban the use and mining of cryptocurrencies in Russia also contributed to bitcoin’s decline.
BTC’s total market capitalization fell 5.2 percent, the equivalent of hundreds of billions of dollars evaporated, and now stands at about $1.6 trillion.