Experts are skeptical about the future prospects of the cryptocurrency price.
Bitcoin's price dipped below $19,000 on Wednesday afternoon, before regaining ground on Thursday. The current price of the cryptocurrency stands at $19,120, according to the Coinbase cryptocurrency exchange.
Wednesday's rapid decline was triggered by US Federal Reserve (Fed) policy.
This is another reminder that cryptocurrencies move at the whims of the Fed, comments CoinDesk, the specialized digital currency news portal, citing the words of Riyad Carey, research analyst at crypto data firm Kaiko.
The Fed raised benchmark interest rates by 75 basis points for the third time in a row to fight record inflation.
This rate hike reduced liquidity flows into the highly dependent cryptocurrency markets.
Cryptocurrencies move at the whims of the Fed.
Co-founder of the ENCRY company, Roman Nekrasov, believes that due to the Federal Reserve rate hike, Bitcoin has little prospect of growing significantly, even to $30,000, before the year is out. I think the Fed will raise rates before the end of the year, and that will hit equity markets, tech stocks and cryptocurrencies.
Martin Hiesboeck, head of blockchain and cryptocurrency research at digital trading platform Uphold, told NextAdvisor that cryptocurrency prices are highly vulnerable to news about the factors contributing to the difficult economic situation.
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