Cryptocurrencies suffered a sharp drop due to the fear of recession: bitcoin fell by 12%
Kyiv • UNN
Bitcoin fell by 12% to 51,995 ljkfhsd, hitting a 5-month low on fears of a US recession. Other cryptocurrencies also suffered significant losses, reflecting the general decline in financial markets.
On Monday, the price of bitcoin fell to its lowest level in five months, reflecting a general decline in financial markets due to growing concerns about a slowdown in US economic growth, which has reduced interest in risky investments. UNN writes about this with reference to Investing.
Details
Over the past 24 hours, bitcoin has lost 12% of its value, falling to $51,995, reaching its lowest level since late February.
Bitcoin continued to fall along with stock markets, which have suffered significant losses since Friday due to weak economic indicators in the United States. Wall Street indices declined on Friday, while Asian markets fell on Monday and Japanese stocks entered a bear market just three weeks after hitting record highs.
Bitcoin and the broader cryptocurrency markets suffered substantial losses due to risk aversion, fueled by the high speculative nature of bitcoin. Despite expectations of interest rate cuts from the Federal Reserve, bitcoin's decline continued as traders favored the Japanese yen and gold as safer assets.
Bitcoin lost value against the Japanese yen and had already experienced a significant drop last week when the US government stepped up circulation of approximately 2 billion tokens, hinting at a potential sale.
The decline in activity in the crypto derivatives market, especially in US ETFs, also failed to provide sufficient support for bitcoin.
Add
The price of Ether dropped to its lowest level since December, losing 21.5% to $2,390.13. This happened amid a general decline in the cryptocurrency markets caused by risk sentiment. Recent speculation about Ether's spot exchange-traded funds and their launch last week failed to stabilize the market.
Other major cryptocurrencies, such as XRP, SOL, and ADA, lost more than 17% each, and the DOGE and SHIB meme tokens experienced a drop of about 18%.
Recall
Last week, bitcoin dropped below $67,000 in response to statements about the potential sale of a significant portion of cryptocurrency assets by the US government, which was discussed by traders.
