Bitcoin Price Drops to Under $30,000
The price of bitcoin fell below $30,000 late Monday as the crypto market remained volatile. BTC dropped to $29,868 before recovering, according to CoinCu data.
Bitcoin and cryptocurrency markets have become increasingly correlated to stock prices over
Thus, Wall Street is also having a rough day as tech stocks continue to go on sale. The Nasdaq index dropped by 4.2%.
The decline can likely be attributed to nervousness over the Federal Reserve’s determination to quell inflation, which is at its highest rate since the early 1980s. The Fed last week announced an interest rate increase of 50 basis points while also pledging to reduce its holdings; instead of buying bonds to stimulate the economy, it will be selling them to ward off inflation.
While the news initially caused an upward swing in equities and crypto prices thanks to pre-announcement expectations that the monetary tightening would be even more aggressive, the news settled in by Friday and markets have been declining ever since.
Luna Foundation Guard’s move to empty $750 million in Bitcoin reserves to shore up Terra’s LUNA stablecoin is adding to the cryptocurrency market’s woes. With one of the largest Bitcoin holding wallets dumping so much BTC on the open market, the price of the cryptocurrency fell. In just 24 hours, the price of LUNA fell by over 31%.
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