Cryptocurrency markets are dominated by pessimism

Due to the frequent fall of bitcoin, the most important digital currency, the cryptocurrency market has been dominated by pessimism

Estimated reading time: 3 minutes

Last Tuesday (14), after reaching a new low of 18 months, bitcoin stabilized due to the freezing of withdrawals from Celsius Network, a US cryptocurrency bank and the expectation of large increases in interest rates in the States. United.

Bitcoin accumulates drops

After falling by as much as 7.3%, the lowest since December 2020, reaching $20,816, the cryptocurrency began to have positive results, with a drop of 0.14%, operating at $22,419.

On Monday (13), bitcoin dropped 15%, the biggest one-day drop since March 2020. This year, the cryptocurrency has already accumulated about 50% of low, being more than 20% since Friday (10) . The asset is down approximately 70% from a record $69,000 in November 2021.

Pointing to “extreme” market conditions, Celsius bank even frozen withdrawals and transfers between accounts “to stabilize liquidity and operations while we take steps to preserve and protect assets.”

Pessimism in the cryptocurrency market

The move, accompanied by forecasts of sharper interest rate hikes by the Federal Reserve, has driven the value of the cryptocurrency market below $1 trillion for the first time since January last year.

“With sentiment on broader risk firmly negative, sellers had their way for a few days,” said Richard Usher of BCB Group. “It will take a shift in overall risk sentiment to change the price significantly.”

Pessimism has infected several companies in the cryptocurrency industry. The broker Coinbase Global announced the layoff of 18% of its employees, approximately 1,100 people, as a measure to reduce costs.

Ether, the second most important cryptocurrency after bitcoin, is trying to regain lost space after falling by up to 10% to $1,075, the lowest level in 15 months. The digital currency has been accumulating a 75% drop from the record reached in November last year, of $4,869.

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Image: nuttapon averuttaman / Shutterstock.com

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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