Bitcoins slide downwards

Financial markets/economy

Posted by MoneyController on 09.07.2024

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After reaching an all-time high of $73,000 each in March, bitcoins have seen their price gradually fall to between $55,000 and $56,000 these days.

End of the post approval euphoria of bitcoin ETFs and halving

In March, the Security and Exchange Commission's approval of spot bitcoin ETFs and subsequent halving had generated euphoria in the cryptocurrency market, causing bitcoins to break their all-time high. That enthusiasm has waned in recent weeks due to a series of events that have resulted in a temporary bearish cycle in the markets.

The persistence of a 'hawkish' Fed

First, as Ryan Browne ('CNBC') points out, there is the persistence of restrictive monetary policy by the Federal Reserve (Fed). In the June meeting, the US central bank still spoke of the need to consolidate the downward trend in inflation: in other words, the Fed will only change its monetary course once there are clear signs that the 2% inflation target can be reached.

The Mt. Gox platform crisis

Another piece of news that has put pressure on the cryptocurrency market, namely bitcoins, concerns the collapse of the Mt. Gox bitcoin exchange platform: as Browne writes, the prospect is that the cryptocurrency platform will be sold for a total of USD 9 billion. But this transaction could fuel bearish pressures on bitcoins.

German government's sale of seized bitcoins

Mentioning what Arkham Intelligence reported, Browne also mentions the German government's sale of 3,000 of the 50,000 bitcoins seized by German police. The sale of more bitcoins on the market, increasing the supply of bitcoins in circulation, could again act in the direction of bearish pressure.

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