Bitcoin, the world’s most valuable digital currency, has dropped 50% in value from its peak in November 2021.
According to estimates from the cryptocurrency exchange Coinbase, the value of the coin has already dipped below $34,000.
#Bitcoin falls to 10-month low under $33,000 on Monday. https://t.co/2uDdj1LZNr
— Bitcoin News (@BTCTN) May 9, 2022
Last week, Ethereum, which came in second after Bitcoin, lost more than 10% of its value.
Bitcoin is worth $650 billion and accounts for around one-third of the cryptocurrency market. However, as it strives to recapture its 2021 highs, the digital asset has been trading in a confined range.
Wendy O, a crypto specialist, explains:
Interest rates rose, and cryptocurrency markets plummeted. In terms of Bitcoin, it appears that we’ll be approaching the $35,000 mark. Personally, I believe we will bottom out at $29,000 again in July and then get a pump. Because markets can change so quickly, you should have a bullish and bearish strategy.
The United States Federal Reserve raised its benchmark interest rate by 0.5 percent to combat inflation, causing a massive drop in digital assets and the stock market. Other factors include the ongoing geopolitical crises and the changing monetary policy of the United States.
