Bitcoin recently plummeted its valuation after now listing $34,000 market value, the first all-time low price of the top cryptocurrency for this year. The popular altcoin dropped a massive 10 percent on its valuation in this current trend. The public highly associates it to the United States Federal Reserve's raised interest rates for the cryptocurrency.
Bitcoin Drops Value: $34,000 All-Time Low This 2022
CoinMarketCap showed a different trend of Bitcoin on the market, dropping to $34,000 last over the weekend and early Monday, before settling at its new price at $36,000. The initial drop to $34k is a 10 percent dive down its valuation, especially as it is only the start of the year and somehow mimics what happened before.
However, Bitcoin is not only to experience this problem as the top coins in the list also see the trend, particularly with the whole cryptocurrency community.
Even one of the most stable coins in history, Ethereum, dropped from $4,000 December value to a massive low earlier at $2,100, more than a 20 percent decline.
Now, Ether is at $2,400.
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Bitcoin Price Drop: 10% Drop Thanks to US Federal Reserve
According to the Wall Street Journal's report, the US Federal Reserve is the one to blame for a massive drop in the cryptocurrency industry. Here, WSJ said that the plans to raise interest regarding these digital coins are the ones to blame for the huge drop in the prices.
Nevertheless, it will be a soon event from the federal agency, primarily as they evaluate the coins as part of the everyday routine.
2022 Cryptocurrency: Nobody Thought Bitcoin, Top Coins Drop
Back at the start of 2021, Bitcoin and other cryptocurrencies also saw a drop in their trend. One event resulted in Bitcoin losing almost half its valuation at its record high of more than $60,000, down to $29,000, also known as the "safe zone" of the famous coin.
The event happened after Elon Musk of Tesla pulled out the use of Bitcoin on its platform, mainly as it used coal to mine the coin and not clean energy.
The cryptocurrency industry has faced a lot of ups and downs throughout the years, which is something that it has seen before. However, it will be unlike those as the past events focused on the trends from the public, not something from the US government's actions and decisions regarding cryptocurrency and its investments.
The raising of interest rates indeed is something to be a bummer in the use and trading of crypto, especially that of Bitcoin, known to have the most significant value of them all. Now that people have seen the decline of Bitcoin and other top coins, panic is happening in the market.
Will it be another case of a "dump and pump" for the top coin and recover soon?
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Written by Isaiah Richard
