Bitcoin – and the entire crypto market more generally – continued to fall, slipping overnight from Wednesday to Thursday to its lowest level since December 2020 and was flirting dangerously with the $25,000 mark at the start of the month. morning.
The most famous digital currency was trading around 08:00 at 25,400 euros on the Bitstamp platform, which represents a drop of almost 15% in the last 24 hours. Its main rival, ether, had fallen back below the psychological threshold of 2000 dollars.
Worries regarding rates on both sides of the Atlantic are clearly giving market participants cold sweats. We are witnessing a real wave of sellers who risk becoming ‘ruthless’, warns Timo Emden. According to the cryptocurrency expert, the current uncertainties are further exacerbated by the terra disappointment.
Fear of a rapid rise in interest rates, particularly from the US Federal Reserve (Fed), is depriving bitcoin and others of one of the main breeding grounds of recent months. ‘Investors therefore continue to favor the defensive’, observes Timo Emden, referring to the risk of a downward spiral.
Returning to the collapse of the terra (-94%), hitherto anchored to the dollar, Ipek Ozkardeskaya underlines the failure of the third stablecoin in the world, which has failed in its promise to maintain a stable value once morest the greenback. The Swissquote analyst finds that the erosion of trust has spread to the entire crypto market.
In the face of the virtual currency debacle, US Treasury Secretary Janet Yellen is calling for increased regulation. But according to Ipek Ozkardeskaya, what the industry needs right now is a ‘return of confidence and excitement regarding how digital tokens fit into our increasingly digitized lives, rather than government regulation’
/ATS