- Bitcoin price lost what it had gained in two weeks.
- The setback occurred in a context of pessimism in world markets because they do not see a quick macroeconomic solution.
- The FED will continue to raise the reference interest rate, which consolidates a recessive scenario.
Bitcoin returned this Friday, August 19, to have a strong drop in its price.
The price of the cryptocurrency with the highest market volume fell more than 7 percent in just 50 minutes and the alarms went off again in the crypto ecosystem, accustomed in recent days to seeing a slight rebound in prices.
The surprise came because bitcoin had been trading at $25,000, but the trend reversed this morning and fell below $22,000.
Bitcoin had resumed a sustained recovery in early August on the back of some encouraging macro data regarding the world economy, which was later confirmed by a slight drop in inflation in the United States.
Nevertheless, the latest news regarding an “inevitable” recession resulted in a break in Bitcoin’s uptrend.
The price of Bitcoin fell more than 7%, the lowest level since July 25, according to data released in Coin Desk and Coinmarket Cap.
It is the biggest drop in a month.
For its part, Ether, the network token ethereumfell 6.5 percent to 1,700 dollars per unit, while other altcoinssuch as Solana, Cardano and Dogecoin, also showed notable declines, in some cases of more than 12 percent.
Causes of the new bitcoin crash
Black Friday in the crypto world coincides with a very significant drop in global stock markets, which reveals a strengthening of risk aversion that seems to dominate the market.
Cryptocurrency-related stocks, such as mining-linked firms and exchange Coinbase, also fell in premarket trading. wall street.
The drop in the price of Bitcoin began after the Federal Reserve of the United States refused to join the analyzes that indicated that inflation had reached a ceiling in that country.
Many thought that the slowdown in inflation would allow a relaxation in the pace of rate hikes, but the illusion was short-lived.
From the FED they let it be known this Friday that in that monetary authority they do not have the idea of postponing the rise in interest rates until next year. And this, everyone knows, implies more recession.
The new collapse in the price of Bitcoin erases the recovery that the largest crypto had outlined in recent weeks.
The momentum of the past few weeks was also supported by optimism over Ethereum’s technology upgrade (“the Merger”). With that leverage, the Ether token doubled and was worth almost $2,000.
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