The fall in cryptocurrencies comes amid a global sell-off in stocks, driven by concerns about the economic outlook and doubts about the viability of big investments in artificial intelligence.
The fall of the cryptocurrency market continues: Bitcoin has fallen to almost 50 thousand dollars, although a week ago the rate was about 70 thousand dollars, and the fall continues, Bloomberg writes.
As of this morning, Bitcoin has fallen to $50,900, which is the worst result since the collapse of the FTX exchange. Ether lost more than a fifth of its value but later recovered to $2,286. Most major cryptocurrencies are also in the red.
The fall in cryptocurrencies comes amid a global sell-off in stocks, driven by concerns about the economic outlook and doubts about the viability of big investments in artificial intelligence. Geopolitical tensions in the Middle East are further exacerbating investor caution.
On August 2, US exchange-traded funds trading Bitcoin experienced the largest outflow of funds in the past three months.
Digital assets have been hit by yen trading and rising interest rates in Japan, according to Gayden Hughes of Evergreen Growth.
Since reaching a record high of $73,798 in March, Bitcoin has been affected by various factors, including political instability in the United States and the possible sale of government-confiscated Bitcoin.
Sean Farrell of Fundstrat Global Advisors LLC believes that the prospect of looser monetary policy is favorable for cryptocurrencies.
According to Coinglass, approximately $790 million in bullish cryptocurrency positions were liquidated in the last 24 hours.
Over the past year, Bitcoin is up about 16%, gold is up 18% and global equities are up 8%.
The day before it was reported that the price of Bitcoin fell below the psychological level of 60 thousand dollars.
We remind you that in January the United States took an important step towards the legalization of Bitcoin. The SEC allowed fund industry heavyweights BlackRock, Invesco and Fidelity to compete with smaller rivals including Valkyrie to begin trading. After that, the price of the cryptocurrency began to rise rapidly.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.