After some stabilization over the past few weeks, the world’s largest cryptocurrency, Bitcoin, has plunged back below $20,000 following a keynote speech by Federal Reserve Chairman Jerome Powell.
Initially, Bitcoin reacted little to Powell’s remarks, but then plummeted, hovering around $19,975 per digital coin on Sunday, representing a fall in value of more than 60% from a year. . .
Bitcoin prices have stabilized at $23,000-$24,000 after falling below $20,000 in June.
The prices of Ethereum and other major digital currencies have also risen over the past two months, raising hope that this nascent market may have bottomed out.
But optimism can be premature and fleeting. According to media reports, companies directly related to cryptocurrency continue to struggle.
Bitcoin, despite the hype surrounding it being digital gold, has proven not to be an asset that performs well when inflationary pressures rise and interest rates rise.
Reports from last month suggested that bitcoin could drop to $10,000 this year.
The latest Bloomberg “MLIV Pulse” poll showed that the price of bitcoin has returned to $10,000.
Kevin O’Leary of Shark Tank also said that the price of bitcoin has not yet bottomed out.
According to experts, the price of bitcoin will reach $10,000 before returning to the $30,000 level.
Bitcoin has experienced its worst days in recent months amid an economic crisis that has caused several crypto exchanges and trading platforms to shut down operations, lay off people and freeze new hires.
The global cryptocurrency market lost at least $670 million in the April-June (Q2) quarter, with 97% of the losses attributed to hacks and fraud.
(Except for the title and cover, the rest of this IANS article has not been edited)
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