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Bitcoin dives to lowest level in 18 months with $200B weekly loss

EconomyBitcoin dives to lowest level in 18 months with $200B weekly loss

World (The Times Groupe)- The price of Bitcoin fell on Tuesday to its lowest level in 18 months, as the sell-off continues in cryptocurrency and global equity markets amid fears of recession due to the Federal Reserve raising interest rates.

According to official figures, Bitcoin’s price fell to $20,846 at 0200GMT, marking the lowest level since December 16, 2020.

At the same time, the market capitalization of Bitcoin fell to approximately $400 billion, a loss of $200 billion weekly.

Later, the price climbed back to $22,850 at 0536GMT for a daily loss of more than 10%.

At 0230GMT, Ethereum, the world’s largest altcoin by market value, was trading at $1,075.80 — its lowest price since January 14, 2021. Later, it rose to $1,225 at 0537GMT, a daily decline of 9.3%.

At 0537GMT, the cryptocurrency market value was down 7.1% to $963 billion. That’s a loss of $300 billion in less than a week.

Despite the massive losses in the crypto market, US stock exchanges continue to plummet amid fears that the Fed’s aggressive monetary tightening against record-high inflation could trigger a recession in the world’s biggest economy.

Dow Jones closed Monday with a massive loss of 876 points, down 2.8%. The S&P 500 lost 3.9%, while the Nasdaq plunged 4.7%.

It is widely expected that the Fed will raise rates by 50 basis points at the end of its two-day meeting on Wednesday.

To temper consumer inflation, which rose 8.6% annually in May, the central bank could increase interest rates by 75 basis points at its September meeting.

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