As of Thursday afternoon, the price of Bitcoin was once again higher than $19,000; however, it is uncertain whether or not it will continue to rise from this point forward. The increased volatility that the cryptocurrency market has been experiencing over the past several weeks is highlighted by the seesawing pricing.
Bitcoin continued to maintain its strength even after the Federal Reserve announced another rate hike on Wednesday. The cryptocurrency’s price had a brief and very little decline after the Fed’s statement, but it quickly recovered. However, the price of the token plummeted after four o’clock in the afternoon on Wednesday, and it continued to lose value until it reached $19,000 once more on Thursday. The value of the token has decreased by nearly 4% over the course of the past week.
In recent weeks, the cryptocurrency market has been prone to increased volatility as a result of macroeconomic events such as recent inflation data and rate hikes by the Federal Reserve. However, it looks that the market is starting to normalize in relation to economic news. This is due to the fact that the market is no longer caught off guard by the current state of the economy. This is especially true in regard to the Federal Reserve, which has been consistent in stating the posture it would take on monetary policy throughout this year. As a result, the market’s response was not as strong when the Federal Reserve announced another raise of 75 basis points, as was anticipated. As a consequence of this, the prices of cryptocurrencies are not fluctuating as as wildly as they were earlier in the year as a result of macroeconomic developments.
Having said that, bitcoin has continued to suffer over the past few of weeks, and the cryptocurrency is having trouble reaching $20,000 this week.
On Monday, the price of Ethereum dropped below $1,300 for the first time since July. Ethereum is also experiencing difficulties, but the dip it is experiencing is more dramatic. During the middle of the week, prices started to go back up, but by the end of Wednesday afternoon, they were back down below that barrier. The price of Ethereum has dropped by more than 13% in the past week. The drop follows the successful completion of the much-anticipated ethereum integration the week before.
“Risky assets are struggling as Powell’s fight against inflation will remain aggressive even as it will trigger an economic slowdown,” says Edward Moya, a senior market analyst at the brokerage firm Oanda. “Risky assets are struggling as Powell’s fight against inflation will remain aggressive even as it will trigger an economic slowdown.”
The falling prices seen in the stock and cryptocurrency markets are being attributed by experts to a number of factors, including the possibility of an economic recession, rising interest rates, the ongoing conflict in Ukraine, and persistently high inflation. The cryptocurrency market has been progressively tracking the stock market as of late, which, according to experts, makes it even more interwoven with variables that affect the economy as a whole.
Since December 25, 2021, the price of bitcoin has not been higher than $50,000. Bitcoin’s price has seen a nearly 70% drop in value since its all-time high above $68,000 on November 10. This decline has been caused by surging inflation, a lagging recovery in the job market, and the Federal Reserve’s ongoing signals that it will begin winding down pandemic measures to support the economy. Despite the ups and downs, the price of Bitcoin has seen a drop of nearly 70% in value.
The following is a comparison of the current price of Bitcoin to its daily high point over the course of the past few months:
