Agencies-Gaza post
Bitcoin faces sharp decline!!!
Sharp declines in digital currencies on Friday raised the concerns of investors in the region and around the world, after the size of the decline of most digital currencies exceeded 10%, evaporating billions of dollars from investors’ money, amid fears that this bleeding will continue in the near future.
Investors’ fears were reinforced by the sharp decline in cryptocurrency prices with a similar sharp decline in global stock prices, with the dominance of fears that the economies of the United States and Europe would enter a recession, after the US Federal Reserve made a series of interest rate increases.
A report launched by PwC Middle East revealed that the UAE’s share in the global cryptocurrency market is currently about $25 billion, and it increased by 500% between July 2020 and June 2021. Regionally, the UAE ranks third in terms of size , according to the report.
Bitcoin and Ethereum
Both “Bitcoin” and “Ethereum”, the two largest cryptocurrencies by market value, declined in yesterday’s trading, giving up the gains made earlier this month, especially “Bitcoin”, which fell to its lowest level in 3 weeks, due to the growing desire Investors have to stay away from risk.
The price of “Bitcoin” fell by 8.5% to $ 21.46 thousand, and “Ethereum”, which easily outperformed “Bitcoin” last month, fell by 9.2%, recording $ 1.7 thousand. The global cryptocurrency market cap fell 8.1% to $1.03 trillion, according to data from CoinMarketCap.
There was no independent catalyst that led to heavy selling pressure, but the rejection of the S&P 500 and the failure to continue its recovery contributed to Bitcoin’s decline, said Marcus Sotirio, an analyst at digital asset brokerage Global Block.
Investors seem to be staying away from risky assets, as the three major stock indices are falling sharply, with the Dow Jones down 0.8%, the S&P 500 down 1.3%, and the Nasdaq down 2%.
Bitcoin has broken the upward trend that started since last June, which indicates that there is a big move to the downside. Looking at the indicator of anxiety in the cryptocurrency market, sentiment is weak amid mounting recession fears and the US Federal Reserve’s assurances that it will only stop tightening financial conditions until inflation is significantly reduced.
Looking to the future, Bit Freedom Research has confirmed that Bitcoin could fall by as much as 60% to 80% more due to tighter monetary policy and increased regulatory scrutiny.
