The more rigorous stance of the Federal Reserve
Posted: Sun Dec 22, 2024 10:38 am
The cryptocurrency market is facing a moment of tension this Friday (20).
Bitcoin, the world's leading digital asset, has fallen 10% in the last 24 hours, trading at around US$92,000.
Since the beginning of the week, when it reached its all-time high, the russia whatsapp number code digital currency has accumulated a loss of 15.8%.
This movement is related to a large volume of outflows from ETFs (investment funds that track the price of Bitcoin) in the United States.
Last Thursday (19), redemptions from these funds reached a record value of US$ 680 million, according to data from Bloomberg.
The market instability also impacted other cryptocurrencies, such as Ethereum (ETH) and Dogecoin (DOGE), which recorded even sharper drops.
Why is Bitcoin falling?
The main reason for Bitcoin's decline is the massive outflow of ETFs, which are funds highly sought after by investors to expose their portfolios to the cryptocurrency market.
These large-scale redemptions generated selling pressure, driving down the asset's price.
Furthermore, , the central bank of the United States, contributed to the movement.
The Fed recently indicated that the interest rate cuts planned for 2025 may be less significant than expected.
➡ Sony advances in the cryptocurrency market with second-layer blockchain
➡ US executive is convicted of WhatsApp scam involving cryptocurrencies
This signaling reduced interest in risky assets, such as cryptocurrencies.
According to experts, the market was experiencing a very fast pace of optimism, which left prices vulnerable to corrections like this.
For Edward Chin, an analyst at Parataxis, the current movement appears to be a typical “profit-taking”, when investors sell to secure accumulated gains.
Bitcoin, the world's leading digital asset, has fallen 10% in the last 24 hours, trading at around US$92,000.
Since the beginning of the week, when it reached its all-time high, the russia whatsapp number code digital currency has accumulated a loss of 15.8%.
This movement is related to a large volume of outflows from ETFs (investment funds that track the price of Bitcoin) in the United States.
Last Thursday (19), redemptions from these funds reached a record value of US$ 680 million, according to data from Bloomberg.
The market instability also impacted other cryptocurrencies, such as Ethereum (ETH) and Dogecoin (DOGE), which recorded even sharper drops.
Why is Bitcoin falling?
The main reason for Bitcoin's decline is the massive outflow of ETFs, which are funds highly sought after by investors to expose their portfolios to the cryptocurrency market.
These large-scale redemptions generated selling pressure, driving down the asset's price.
Furthermore, , the central bank of the United States, contributed to the movement.
The Fed recently indicated that the interest rate cuts planned for 2025 may be less significant than expected.
➡ Sony advances in the cryptocurrency market with second-layer blockchain
➡ US executive is convicted of WhatsApp scam involving cryptocurrencies
This signaling reduced interest in risky assets, such as cryptocurrencies.
According to experts, the market was experiencing a very fast pace of optimism, which left prices vulnerable to corrections like this.
For Edward Chin, an analyst at Parataxis, the current movement appears to be a typical “profit-taking”, when investors sell to secure accumulated gains.