Bitcoin (BTC) is the largest and most valuable coin in the crypto industry. In fact, some experts say that its value will be equivalent to gold soon. However, BTC has been experiencing another loss with its value continuously taking a dip.
The recent slowdown of its value is mostly due to investors losing a lot of confidence in Bitcoin. There are a lot of concerning factors that led to its short-term downfall such as stolen coins in 2021. With this, some countries decided to put restrictions on using digital currencies. There were also crypto bans and crackdowns.
While BTC will inevitably come back to raise its stock once more, there are still underlying issues that Bitcoin needs to address. For NFT games like Paradise Trippies NFT, it’s imperative that the value of BTC rise so the other altcoins follow as well.
The lowest it’s ever been since the beginning of the year
Bitcoin’s value plunged to its lowest level as financial markets reeled from mounting recessionary fears. This caused a huge movement in the market to the point where there were some rumours that other coins might take over its place.
The greatest intraday decrease since January 2022 with the largest digital currency plunge of 11% ($35,611)  . Aside from Bitcoin, Ethereum’s price dropped by as much as 8.7%.
There were losses of as high as 15% for Avalanche and 11% for Solana, two of the biggest winners after the US central bank boosted interest rates.
‘Investors are jittery about the Fed continuing to raise interest rates after yesterday’s 50 bps hike’, stated Jason Lau, the San Francisco-based chief operating officer of Okcoin.
‘The potential of additional rate hikes makes the trajectory of the global economy uncertain’, he added.
The Federal Open Market Committee of the US central bank unanimously decided to raise the benchmark interest rate by half a percentage point. This is to begin enabling its holdings of Treasuries and mortgage-backed securities to be sold in June.
Mild or grave bull market coming?
The Federal Open Market Committee of the US central bank unanimously decided on Wednesday to raise the benchmark interest rate by half a percentage point and to begin enabling its holdings of Treasuries and mortgage-backed securities to be sold in June.
Risky assets gained after Fed Chair Jerome Powell indicated a 75-basis-point hike was not something that the committee is currently discussing. As a result, Bitcoin has not been able to break out in any significant sense. Over the previous months, the coin has primarily moved in a narrow range.
The industry has been losing money as a result of the economic downturn. A total of $339 million in withdrawals from crypto goods have been recorded according to CoinShares statistics. Since June 2021, Bitcoin has had its highest single week of outflows when it accounted for the bulk of the flows.
Will it be a grave bull market? Judging how increasingly volatile the market is, it’s important to note that crypto is continuously evolving and the market will find itself for correction as the new age of crypto begins again. It’s safe to say that digital assets fluctuate all the time, and BTC is experiencing the shorter end of the stick for now. This is also one of the reasons why it is best to know how the crypto market works before investing to avoid losing a huge amount of money in the long run.
There are a lot of digital assets like Paradise Trippies NFT that will start to come back up– hopefully, in the right trajectory.