Since December 2020, cryptocurrency grieved a lot and tests its lower levels. Moreover, we saw another random crash thereby noting Bitcoin and Ethereum significant losses ending the weekend.
On Sunday, bitcoin traded below nearly around $28000 which was down by 6 percent during the past week. Furthermore, Ethereum even faces higher losses thereby touching a low of around $1433. However, the biggest low in about eighteen months.
The key crucial driver which is hurting the crypto is the hottest inflation release. As we all are aware of the fact that in the month of May the US inflation spiked and raise to 8.6 percent which was forecasted at 8.3 percent. Consequently, more than the forecasted figure led the Federal Reserve to raise the interest rates nearly by 0.50 BPS.
The Chief Economic Advisor told CNBC that we need to be more aggressive and cautious with hikes in interest rates. However, we need to control inflation to stabilize our economy.
Bitcoin Viewpoint
Analysts are sitting on the bearish side and they are expecting that we may witness prices below $19000 levels.
According to Kitco News, the short-term outlook of bitcoin is declining.
The pitiable performance of Equity stock also hampers Bitcoin. Bitcoin has a major support of $24000 levels and if that breaches then we may see a downfall again in the prices of Bitcoin. Moreover, a downside rally may continue below $19000 levels.
Recently, at an event in New York, Yellen said that it is a very risky investment and he would not recommend people to invest and treat it like a retirement plan.
However, this also could be a possible reason why bitcoin (cryptocurrency) dampened down and grieved at lower levels.
On Sunday, the Lender of Cryptocurrency which is Celsius Network Ltd announced that they would be taking a break off on all withdrawals, transfers, and swapping between accounts. However, they are taking the necessary steps to alleviate liquidity & operations to overcome extreme market and trading conditions. Â