CoinDesk revealed that the price of the most popular
cryptocurrency, Bitcoin, has slipped to a level not seen in
cryptocurrencies since 2020, as the price approached
$20,000, as the slide has extended for 12 weeks so far
Bitcoin price data
According to the economic website, the approaching of the
bitcoin price to $ 20 thousand came during European
trading hours yesterday, Wednesday, indicating a decline in
the market value that comes in conjunction with weak
macroeconomic sentiment and risks of contagion from
. within the crypto market, the data showed
Meanwhile, Celsius, a popular cryptocurrency lender,
announced a temporary freeze on all purchases and
withdrawals earlier this week; It attributed its decision to
"harsh market conditions," which led to questions about
the company's liquidity. Prominent crypto fund Three
Arrows also faced at least $400 million in liquidations and
rushed to lower escrow levels by selling major positions
on Wednesday morning
The decline in the market value of Bitcoin began in the
early hours of last Tuesday, as it fell about 22,000 dollars,
and the decline intensified on Wednesday morning, as the
cryptocurrency slipped below 21,000 dollars, fell for the
eighth consecutive day and lost 30% during the past week
Consumer Price Index
Meanwhile, the US Consumer Price Index (CPI) report for
May showed that inflation in the world's largest economy
reached 8.6% on an annual basis, 0.3 percentage point
higher than the expected 8.3%
At a time when investors were pricing in further price
increases as the Federal Reserve tries to control prices,
. after stock prices fell in global trading markets
The drop in stock prices comes as traders expect
companies to report lower revenue and consumer
spending. Moreover, some observers expect the US central
bank's actions to further affect Bitcoin prices
See also: The US Federal Reserve raises interest rates by
75 points, in the largest increase since 1994
Over the past two years, cryptocurrencies have become a"
global all-encompassing asset," Michael Morch, CEO of
crypto hedge fund ARK36, said in an email. So expect
their reaction to be negative now when investors realize
that central banks have not reacted nearly as aggressively
"as they would need to in order to control inflation
He continued, "The global economic environment has
become very challenging for investors participating in all
types of markets, so it is no surprise that Bitcoin is also
' facing increased downward pressure