Bitcoin on Sunday fell nearly five per cent as the BTC price remains below $80,000-mark. Bitcoin price fell 4.92 per cent to $78,797.90. Ethereum price fell by 8.33 per cent to $2,416.74. Cryptocurrencies have been struggling for direction since tumbling last year, having been left behind by big rallies in gold and stocks.
On Friday, the world’s largest cryptocurrency by market value, Bitcoin, fell to as low as $81,104, the lowest since November 21, while the U.S. dollar gained after former Federal Reserve Governor Kevin Warsh was selected as the next Fed chair. Market-leading bitcoin has lost a third of its value since striking record highs in October last year. Bitcoin and other cryptocurrencies have been regarded as beneficiaries of a large balance sheet, having tended to rally while the Fed greased money markets with liquidity – a support for speculative assets.
Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin, said the Fed’s ‘bloated balance sheet combined with heavy-handed bank regulation’ had kept liquidity trapped on Wall Street instead of flowing to Main Street, helping fuel bubbles in assets such as bonds, crypto, metals and meme stocks. Sometimes these price adjustments feed on themselves, Jacobsen said, adding that Friday’s abrupt drop had reminded people of the risks. He said it was “possible, if not likely, that we see more selling over the next few days.”
Leave a Reply