Following a decline in stock markets throughout the world and the ongoing strength of the United States dollar, the price of bitcoin dropped below $19,000 on Wednesday morning, reaching its lowest level since June at one point.
Today, the price of Bitcoin has risen again beyond $20,000, representing an increase of more than 7% in the preceding twenty-four hours. The majority of the market is now in a positive position as well. The overall volume of the cryptocurrency market is at $1.04 trillion, representing a 5.85% increase over the last 24 hours.
According to statistics provided by CoinMarketCap, the price of ETH, the native token of Ethereum‘s blockchain, which is due to undergo a significant technical upgrade the next week, increased by 4% to reach $1,705.
Monetary policy is becoming more restrictive as a means of combating runaway inflation by central banks throughout the globe. The Federal Reserve of the United States has recently implemented a number of interest rate rises that together amount to 2.25 percentage points. The markets are anticipating that there will be further interest rate hikes.
Nevertheless, forward-looking markets focused on leading signs that showed the persistently high pandemic-era inflation will moderate in the following months, undercutting the rationale for a prolonged rapid-fire tightening by the Fed.
The freight rate increase that occurred last year was close to a factor of 10 as the COVID-19 epidemic disrupted supply chains. The result was an increase in the rate of inflation at the economy’s core, after the effects of variable energy and food were taken into account.
Since its November high, the cryptocurrency market has taken a beating, losing roughly $2 trillion in value. Bitcoin has fallen from its November all-time high of $68,990.90 by over 60%.