The Price of Bitcoin and Other Cryptocurrencies Dropping Drastically
In the last 24 hours, the value of Bitcoin has depreciated by 7.4%, and by the morning of September 28, the largest cryptocurrency by capitalization was worth $18,746, which was the lowest figure since November 2020. Bitcoin later recovered some of its losses and now stands at $19,144.
Other major cryptocurrencies are following Bitcoin’s footsteps and depreciating. For example, the price of Ethereum has experienced a decrease of almost 6% in a day and is currently worth $1,311.
The downward trend in the crypto market is directly related to the side effects of the war initiated by Russia in Ukraine and the tightening of monetary policy by national banks due to the high level of inflation, which, along with the slowdown in economic growth and the risk of recession, also fall victim to cryptocurrencies.
After the European Central Bank, the US Federal Reserve raised interest rates again. The rise in rates makes the dollar stronger to a record high and makes it more profitable to own it – investors are now correcting the dollar and investing in this currency, while selling relatively volatile crypto-assets, which has a negative impact on their price.
Currently, the capitalization of the crypto market is 916 billion dollars, of which 360 billion comes from Bitcoin, and 157 billion from Ethereum.
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