Bitcoin fell to its lowest levels in a three-week period – by 1.9% to $16,227. This is the worst figure since November 29 of this year. The depreciation of the cryptocurrency comes once morest the background of the fall of the S&P 500 index for the fourth session in a row due to a possible increase in interest rates by the US Federal Reserve.
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According to the founder of Fairlead Strategies, Katie Stockton, bitcoin is expected to fall to November lows at $15,600. Moreover, in the long term, the cryptocurrency is expected to decline to $13,900.
After cryptocurrencies reached record high rates in 2021, difficult times came for them next year, largely due to the tightening of the policy of American and other regulators regarding the corresponding market, as well as the collapse of the Terra / Luna ecosystem, the Three Arrows Capital hedge fund and the crypto exchange FTX. In addition, in the past few years, cryptocurrency rates have significantly correlated with the state of the American stock market, which is going through hard times – which has become one of the reasons for the current fall in bitcoin and other assets.
According to Bitfinex experts, cryptocurrency traders should also monitor the market during the holidays. Many companies and solo traders take a break during this time, and a decrease in trading activity can increase the risk of volatility.
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