Foreign News: US Interest Rate Expectations Increase Cryptocurrency Burden, Bitcoin Plunges

According to a Deutsche Presse-Presse Frankfurt report on the 10th, Bitcoin fell below $40,000 for the first time since September last year.

According to the report, the oldest and most popular cryptocurrency fell to $39,559 on the Luxembourg exchange Bitstamp, a decline of around 40% from its all-time high of around $69,000 on November 10. Last year.

The report also indicates that other important numerical advantages are also suffering. Ether, for example, did not reach below $3,000. According to the Cryptocurrency Market Cap portal, the combined market value of all cryptocurrencies has fallen below $2 trillion. The most recent figure was $1.86 trillion.

The report notes that the weakness of the digital currency is a heavy blow to US monetary policy and that the Fed decides to raise prices sooner than expected. Goldman Sachs plans to raise prices four times this year, the first in March.

“Investors always neglect risky assets to protect their assets,” said Timo Emden, analyst at Emden Research in Germany.

In addition to rising expectations for interest rate hikes, experts say the situation in Kazakhstan has impacted Bitcoin, where cryptocurrency mining is prominent. The Kazakh government has temporarily shut down the internet in response to nationwide unrest, in addition to unsuspecting traders.

According to a Reuters report in New York on the 10th, digital asset manager CoinShares announced on the 10th that as the stock continued to fall on the 10th, total income from cryptocurrency trading assets and income was n 'had stopped increasing. a commercial week. To do. $ 270 million.

The stock posted gains for the fourth week in a row since mid-December, totaling $ 456 million (0.8% of total assets under management), according to the report.

According to the report, as of the end of the week ending 7, $ 107 million in Bitcoin revenue. Bitcoin is the world's largest cryptocurrency by capitalization.

CoinShares said the leak "shows the Fed's concern over currency inflation and investor fears over inflation in response to the FOMC minutes."

The report noted that reliance on Fed tightening policy is not good for risky assets such as cryptocurrencies as the stock market tightens and markets rise further.

CoinShares noted that there had been more trades than usual over the past four weeks.

The Bitcoin exchange rate is said to have fallen almost 10% since the start of the year. On the 10th, Bitcoin fell below $40,000 for the first time since September 2021.