Bitcoin fell below $28,000, and all other cryptocurrencies were under pressure as well as an updated investor’s concern for the US economy. The fall began after the publication of the bulletins of the US Federal Reserve meeting from July expressing the worry of the officials over rising inflation, which could lead to further inflation rise.

Image source: Pixabay.

When the central bank held its meeting in July, the Fed raised its benchmark interest rate to its lowest level in more than twenty-two years. Markets are now trying to decide whether the central bank can now change interest rates this year. The stock market fell for the second day of the year, and the 10-year Treasury record reached its highest date since 2008.

According to Coin Metrics, Bitcoin’s correlation with stocks is at its lowest level in two years, although it reached an all-time high in 2022 in response to the Fed’s campaign to raise the rate to curb inflation.

While inflation is an argument in favour of the rise of crypto assets, many aspects seem to also be in favour of inflation, such as the lowering of risk appetite of investors who fear a recession, and the avoidance of bitcoins as a riskier asset, explained the chief investment officer.

Source: CNBC.

According to experts this week, the annual volatility of Bitcoin and Ethereum fell to multi-year lows at 35 and 37 respectively. They believe that bitcoins return to the $330 per cent price in June, on low volume, so the rally didn’t have any power. Bitcoin is anticipated to make its debut, the major catalyst for cryptocurrencies, and is coming in due for the delay, and also dampened investor interest in crypto assets. The exchange rate of Bitcoin is 27.800 when the news is published.

The number of key crypto assets that are sold by market cap, including Binances BNB, Ripples XRP and Solana and Polygon, fell more than 1% on Thursday.

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