What is happening in the Bitcoin market and what does it mean?

The price of Bitcoin continued its decline, Saturday, due to investors avoiding risky assets in light of the nervousness of global markets, as it reached $ 18,134 at 19:40 GMT, a decline of 10.75 percent from its value on Friday, its lowest level since December 13, 2020.

Since reaching its highest level on November 10, 2021 ($68,991), Bitcoin has lost more than 72 percent of its value.

All major cryptocurrencies fell sharply on Saturday. Ether, the second most widely used digital currency, has lost about 10 percent of its value.

Stocks declined this week, due to the fear that the central banks , led by the US Federal Reserve, will not appear strict in their will to curb inflation, which threatens to weaken the global economy .

While the cryptocurrency market was worth more than $3 trillion at its peak 7 months ago, it fell below $1 trillion on Monday, after hitting $3,000 billion in November.Related news

A brief freeze on bitcoin withdrawals from the world’s largest platform, Binance, this week contributed to a decline in investment in cryptocurrencies.

Coinbase, for its part, announced on Tuesday that it would cut 18 percent of its jobs, or about 1,100 positions.

Co-founder and general manager of Coinbase Brian Armstrong justified the large-scale expulsions as apparently related to “we are entering a recession after an economic boom that lasted more than 10 years”.

In 2021, this still nascent sector has attracted a growing number of traditional financial investors whose appetite for risk has been opened up by the ultra-loose policies of central banks around the world.

Edward Moya, senior market analyst for the Americas at Onda, said on Saturday: “Breaking the $20,000 barrier shows the collapse of confidence in the cryptocurrency sector, and this is what we are witnessing recently. There are too many cryptocurrencies and exchanges that are under tremendous financial pressure due to increased borrowing costs. “.   

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