According to market data, this Sunday at noon bitcoin was trading at $34,550, down 4% in the last 24 hours. This means it is worth 49.9% less compared to its historical high, recorded on November 10, 2021.
According to the Crypto Fear & Greed Index, the market is in a state of “extreme fear”, with a floor of 18 points. An aggravation of stock market panic compared to yesterday, when the rating was 23 points.
Since the beginning of 2022, the cryptocurrency created by Satoshi Nakamoto has been experiencing a marked downward trend, with a cumulative decline of 25%. Much of this fall was conditioned by geopolitical tensions arising from the Russian invasion of Ukraine and high inflation.
It so happens that central banks changed their monetary policies to cope with the global economic crisis. In the case of the European Central Bank (ECB), although no date for rate hikes has been set for the time being, it did toughen its rhetoric and assured that it will begin to withdraw the stimuli enabled by the pandemic.
For its part, the U.S. Federal Reserve (FED) did adopt a more hawkish stance.(FED) did adopt a more aggressive approach, with two interest rate hikes, the last one last Thursday with a half-point increase. With the first rate hike, which took place last March 16, bitcoin fell back slightly, but by the end of the month it reached its highs at $47,967.
However, when on April 6 the minutes of this body anticipated a possible more aggressive increase of half a point, this digital currency fell by 4.32%. Last Wednesday, the Fed applied its second hike and since then the most popular cryptocurrency has lost a little more than 13%. That day it closed at 39,800 dollars.
Beyond the stock markets, on-chain analytics platform CryptoQuant noted that large speculators may have had a primary influence on the latest declines.
According to data shared by the platform, exchange listings involved cryptocurrencies dormant for a maximum of three months and thus likely in the hands of more speculative investors.
According to the average conducted by Coin Monitor, the bitcoin to Argentine pesos is worth $7,038,787. While the bitcoin-dollar value is USD 34,405 during midday on Sunday.