Bitcoin has stabilized slightly after a sharp decline but the
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Bitcoin has stabilized slightly after a sharp decline, but the market is bearish

Bitcoin halted its rapid decline on Tuesday, hitting its lowest level since December 2020 at $20,816. Bitcoin is currently trading at $21,000 Despite the stabilization of the world’s largest cryptocurrency, pessimism prevails among cryptocurrency market participants.

    Credit: REUTERS/Agustin Marcarian

Credit: REUTERS/Agustin Marcarian

Bitcoin fell 15% on Monday, June 13, the world’s largest cryptocurrency’s biggest one-day drop since March 2020. It’s down about half of its value this year, down more than 20% since last Friday alone. Since its all-time high of $69,000 last November, Bitcoin is down nearly 70%.

In addition to bitcoin, almost all leading cryptocurrencies have seen a decline, which has seen the crypto market fall below $1 trillion for the first time since January 2021. Analysts attribute this to expectations of a stronger interest rate hike by the US Federal Reserve after the release of data on significant inflation in the US, which has already caused US stock indexes to fall over the past week.

Most experts in the cryptocurrency market are pessimistic about Bitcoin’s immediate prospects. “Sellers traded their own way for several days given the broadly negative risk appetite,” – said Richard Usher of crypto firm BCB Group. In order to significantly “reverse” the price, it is necessary for investors to take risks again, that is, invest in cryptocurrency. However, no one is in a hurry to risk their money.

In an extreme situation, crypto market participants are forced to “tighten their belts” to stay afloat. On Tuesday, crypto exchange Coinbase Global announced it would cut 18% of its staff, or about 1,100 jobs. Gemini and Crypto.com earlier announced their intention to downsize, and Coinbase announced the suspension of hiring newcomers.

US Securities and Exchange Commission Chairman Gary Gensler said Tuesday that crypto platforms operate in a similar way to banks, raising questions about how they can offer investors such high returns. “I warn the public. If something seems too good to be true, there’s a good chance it is.” He noted and implied that crypto exchanges’ promises of high return on investments are too tempting to be true.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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