Bitcoin plummets to $23k as entire crypto market struggles
Inflation and expected interest rate hikes likely play a part in Bitcoin’s dropping value.
Over the weekend, Bitcoin dropped to lower than $24,000, the lowest price that the cryptocurrency has seen since December of 2020. It’s currently sitting at $23,471.
The drop is indicative of a broader drop in cryptocurrency assets, as the market lost around $200 billion in valuation over the weekend.
Last Friday, Bitcoin was hovering around $29,000 for most of the day, occasionally dipping down to the $28,000 range. When markets opened this morning, the popular cryptocurrency was trading at less than $24,000.
Bitcoin isn’t the only cryptocurrency that is experiencing a crash at the moment
In fact, the entire cryptocurrency market lost more than $200 billion in valuation over the weekend. Additionally, the market capitalization for cryptocurrency fell to less than $1 trillion for the first time since February of 2021.
There are several factors that contribute to the decrease in the crypto market. Inflation rates for recent months are higher than they have been since the early 1980s. And many expect increased interest rates coming in from the Federal Reserve in the coming weeks.
Additionally, cryptocurrency tends to follow the trend of stocks. As CNBC notes, last weekend also saw a drop in most stock indexes. Namely, the tech-focused Nasdaq experienced a sharp drop, which correlates with the cryptocurrency drop.
Bitcoin is currently down 63 percent from its all-time high in November of last year. Previously, Bitcoin has dropped around 80 percent before rebounding, so it’s possible that the cryptocurrency could fall even further in the coming days or weeks.
- Bitcoin falls to its lowest price since July 2021
- PayPal says you can finally move your crypto to another wallet
- Here’s what NFTs on Instagram will look like
- Tech companies don’t care if you hate NFTs