Bitcoin drops to six-month low as investors dump speculative assets

Date:

Bitcoin fell to a six-month low on Saturday, extending the sharp drop recorded in the previous session as the crypto market was wiped out by a strong shift from speculative assets by investors.

The price of the largest digital token by market value fell 4.3% on Saturday morning in Europe to $ 35,127, the lowest level since July 2021. Bitcoin has lost almost a quarter of its value this year.

Other cryptocurrencies are also under strong selling pressure, with the FT Wilshere index of the top five tokens, excluding Bitcoin, falling 30% in the first month of 2022.

The defeat of cryptocurrencies occurs because investors have dumped tech stocks in the hope that the US Federal Reserve will curb loose pandemic monetary policy to combat inflation. The global stock market recorded the biggest decline in more than a year this week, with fast-growing companies that helped recover from the severity of the coronavirus crisis endured a sharp decline.

Investors are now predicting that the Fed, the world’s most influential central bank, will raise interest rates three to four times this year, which is driving bond yields soar. Analysts say that higher yields on low-risk assets such as US Treasuries make the potential returns from speculative investments like cryptocurrencies less attractive.

Andrew Sullivan, Managing Director of Outset Global in Hong Kong, said on Friday that “as investors move to cash, a huge amount will occur in many markets as technology share in the region declines in Asia. I have. “

The day after the Central Bank of Russia announced in its draft proposal Thursday, a plunge in digital assets also took place. Trying to ban All cryptocurrency transactions and mining. The proposed regulations will also block banks from investing in cryptocurrencies and ban the exchange of cryptocurrencies for traditional currencies in Russia, one of the world’s largest cryptocurrency mining centers.

“The rising value of cryptocurrencies is largely defined by speculative demand for future growth and creates a bubble,” the central bank said in a 36-page report. “Price increases are largely supported. So there is also an aspect of the financial pyramid, “he added, depending on the demand from new entrants to the market.”

Initially, this announcement had little impact on Bitcoin. Bitcoin rose 3.7% against the dollar on Thursday. However, by Friday afternoon in Asia, cryptocurrencies had fallen more than 10% from their previous day’s highs to their lowest levels since August.

“Russian regulators are dissatisfied [with the cryptocurrency industry] For several years, their warnings haven’t been paid attention to, “said Vince Turcotte, Asia Pacific Sales Director at Eventus Systems.

He added that Russia’s proposal was “relatively strict”, but only the latest in numerous announcements on cryptocurrencies by regulators around the world, primarily focused on protecting individual investors. I did.

Turcot is the situation in Russia China Before Beijing launches a stronger crackdown on the industry. “No one is listening [Chinese officials] Until they actually drop the hammer, “he said. Last year, China declared that all cryptographic activities were illegal.

Video: Where Crypto Anaki Ends | Rex Mega Trend

Weekly newsletter

Sign up for our weekly newsletter for the latest news and views on FinTech from FT’s correspondent network around the world. #fintechFT

Sign up here with just one click

Bitcoin drops to six-month low as investors dump speculative assets Source link Bitcoin drops to six-month low as investors dump speculative assets

The post Bitcoin drops to six-month low as investors dump speculative assets appeared first on California News Times.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Popular

More like this
Related

Stonehenge builders were infected with parasites, ancient poop reveals

In addition to the Neolithic monument, the Stonehenge builders...

Bruce Willis’ wife Emma Heming struggles in diagnosing aphasia

You need to give top priority to yourself. Emma...

Boston Celtics Throttle Miami Heat to Level East Finals One Game at a Time | NBA

Jayson Tatum scored 27 points, Marcus Smart and Jaylen...

Texarkana, Texas – Uncle Kracker to headline Hope Watemelon Festival

Texarkana, Texas 2022-05-19 23:40:00 – One of the most...