Bitcoin (BTC) drops to $20,000 and ether (ETH) hits $1,000 – Money Times

The market capitalization of bitcoin fell to US$ 286 billion. (Image: Unsplash/Executium)

the fall of cryptocurrencies continued in the early hours of this Wednesday (15), with the bitcoin (BTC) reaching the $20,000 level, according to Decrypt.

quoted at US$ 20,594 at the time of publication of this news, the bitcoin lost more than a third (32.16%) of its value in the last week, according to data from CoinMarketCap, amid a scenario of rising inflation and anticipation of the increase in interest by the Federal Reserve (Fed, the US Central Bank).

The market capitalization of the largest cryptocurrency of the world fell from $1.27 trillion in November 2021, when the bitcoin reached its all-time high to $386 billion today.

O ether (ETH)which ranks second in the cryptocurrencies, lost 40.97% of its value in the last week, with 10.36% in the last 24 hours. At the time of publishing this news, ETH was quoted at $1,065.

The current price of cryptocurrency is nearly 80% lower than the all-time high of $4,891 recorded in November last year.

Factors that pressure bitcoin and other cryptocurrencies

According to Decrypt, the main reasons for today’s drop in bitcoin and the others cryptocurrencies are: the Fed’s upcoming interest rate hike to try to contain inflation, increased outflows of cryptocurrency funds, and reduced activity in the decentralized finance sector (DeFi).

After a meeting yesterday (14) of the Federal Reserve on the increase in interest rates in the United States, the American Central Bank is expected to make a statement this Wednesday.

The withdrawal of $102 million of digital assets last week indicates that investors are concerned about the uncertainties of investing in this sector.

In DeFi, the total blocked value (TVL) present in the main blockchains suffered a fall. Decentralized networks such as Ethereum, Avalanche (AVAX)BNB Chain and Solana had an 8% reduction in TVL in the last 24 hours.

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O Money Times publishes informative articles of a journalistic nature. This publication does not constitute an investment recommendation.

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