storiesbase.com – Data shows the price of Bitcoin (BTC) has fallen to below the level of US $ 19,000 on Sunday (19/6/2022). It was revealed, apparently, that this is the cause of the price of Bitcoin and other crypto-assets plummeting insanely.
Bitcoin price is currently extending its 12-week decline amid weak macroeconomic sentiment and contagion risks from within the crypto market.
Crypto lending firm Celsius Network earlier this week suspended all withdrawals citing extreme market conditions, raising questions about the company’s liquidity.
Meanwhile, leading crypto hedge fund company Three Arrows is facing at least $400 million in liquidation and is rushing to lower its collateral level by selling key positions on Wednesday morning (15/6/2022).
Launching CoinDesk , Sunday (19/6/2022), Bitcoin fell just above the level of US$22,000 US time, on Tuesday (14/6/2022).
However, the price of Bitcoin is currently perched at the level of US $ 18,319. The decline accelerated early Wednesday, with the cryptocurrency sliding below $21,000, falling for an eighth straight day and losing 30 percent over the past week.
Assets traded hit US$20,168 on Wednesday (15/6/2022), a level previously seen in mid-2020. The current Bitcoin sentiment among investors remains bearish.
FxPro market analyst Alex Kuptsikevich said concerns around a sharp tightening of monetary policy were weighing on financial markets and flowing into cryptocurrencies through their influence on large institutional investors. “It is not surprising that bitcoin and ether are dragging the entire cryptocurrency market down in such an environment,” Alex said in an email to CoinDesk as quoted on Sunday (19/6/2022).
The US Consumer Price Index (CPI) report for May 2022 showed inflation in the country stood at 8.6 percent ( year-on-year / yoy), 0.3 percentage points higher than the expected level of 8.3 percent.
The data sent global markets down earlier this week, as investors predicted further rate hikes as the Federal Reserve (The Fed) tries to control prices.
The decline in equity prices came as traders expected companies to report lower revenue and consumer spending. Some observers expect the central bank’s actions to have a further impact on the Bitcoin price.
Mikkel Morch, executive director at crypto hedge fund ARK36, said that over the past few years, cryptocurrencies have become a global macro asset.
He hopes stakeholders will react negatively now that investors realize that central banks have not reacted as aggressively as they need to to control inflation. “The global economic environment is becoming very difficult to navigate for investors involved in all types of markets, so it is not surprising that Bitcoin is also facing increasing downward pressure,” said Morch.