Its (BTC) price fell further 7.8 percent over the last 24 hours, bringing it to an all-time low of $18,420.
Although the main cryptocurrency has recovered a little above $19.2K at the date of this article, Bitcoin pr news distribution service, it is the second notable decrease in the last week that has brought Bitcoin down nearly 18%, or to levels not previously seen since 2020.
The drop occurred as more than $400 million in Bitcoin longer spot purchases were canceled from the beginning of Sunday the 18th of September, registering massively high numbers for two days in a row according to information from Coinglass.
As Bitcoin dominance fell to 39.3 percent at the lowest that has been recorded since 2018 The panic quickly reached to the entire market for digital assets.
The value of the cryptocurrency market fell to $903.2 billion. The major cryptos like Ethereum (ETH), Ripple (XRP) and Cardano (ADA) suffered losses of double digits. As per the Crypto Fear and Greed Index it was back in ” extreme fear” level, falling by six points within a single day.
Fed Rate Hike Fears Catalyze Crypto Crash
The drop in Bitcoin’s price coincided with the general decline in stocks, which dropped early on Monday, Bitcoin press news distribution service, in anticipation of a new important interest rate hike decision from United States Federal Reserve (Fed) on Wednesday Monday, September 21st.
The markets are concerned that the next interest rate hike will be recorded in the books as being the largest in the last 40 years. Financial experts predict they believe that they believe that the US central bank will likely raise the interest rate up to 0.75 percentage points up to 3percent or increase the rate “by an unprecedented one full percentage point to 3.25%” to curb the 8.3 percent inflation.
Investors are also concerned about the news of the Bank of England, which is expected to announce an interest rate hike of 0.75 percent on Thursday Tuesday, September 22. Additionally other central banks around the globe are also moving to increase interest rates. While the plan is claimed to be designed to reduce the historically high levels of inflation however, it has brought market volatility.
Bearish Sentiment Dominates
Contrary to popular perceptions of it being a safe investment, Bitcoin press news distribution service is moving in positive relation, or even in sync with stock market prices. That means the most popular cryptocurrency remains extremely sensitive to market fluctuations as well as macroeconomic conditions, including fears of global recession and the tightening of the monetary policy.
In the case of Bitcoin options, also known as investment contracts that grant the option to purchase and sell an investment for an agreed price, sellers are dominating the BTC option market at the month of September to. However the month of September has historically been thought to be a bearish month for Bitcoin prices.
Furthermore the crypto industry is in the midst of a debate Goldman Sachs economists’ warning that Bitcoin could plunge to new lows in the region of $12,000 in the event that there is a drastic increase in interest rates by the US central bank raises its rate of interest a lot Pr services for Bitcoin companies and startups.
Source on encyclopedia