Bitcoin loses more than 9% of its value with expectations of more.. and a collective decline in cryptocurrencies
The digital currency market recorded a significant decline during the past week, as the value of Bitcoin (BTC) fell by more than 9% to currently reach about $95,114.2, its lowest level since August.
This decline is due to the Federal Reserve’s statements about reducing the number of expected interest rate cuts next year, in addition to its confirmation that financial institutions are prohibited from holding Bitcoin, without any intention to amend this law.
In this context, Andrei Dragus, Head of Research in Europe at Bitwise, indicated the possibility of continued pressure on Bitcoin in the coming weeks as a result of the tight monetary policies followed by the Federal Reserve.
Dragus said: “The data of the Truflation spot inflation indicator indicates a new rise in inflation levels in the US economy, which poses a difficult challenge for the Fed to reconcile between limiting the effects of financial tightening and preventing the return of an inflation wave similar to what happened in the 1970s.”
