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The price of Bitcoin has fallen to its lowest level in more than a week as traders watch the outlook for a shift in US monetary policy and continued tightening of cryptocurrency regulations in China.
At 8:00 p.m. UTC on Monday, the price of the world’s first crypto began to drop from around $ 35,466 to a low of $ 33,221. Prices were up slightly per hour, with a bitcoin changing hands for around $ 33,793 at the time of publication.
The move marked the biggest daily loss for bulls after falling 6.2%, the highest since May 28, amid selling pressure induced by weaker bullish investor sentiment.
Some point to the continued pressure from mainland China on crypto mining and trading operations where the Weibo accounts of key crypto thought leaders have been blocked.
“China continues to pressure crypto with continuous mining bans that eliminate its most popular social media platform, Weibo, without crypto influencer accounts,” said Jehan Chu, managing partner of Hong Kong-based crypto investment firm Kenetic Capital. “This signals a tightening of the noose around crypto on the continent.”
Markets around the world have also traded on volatile ground as investors consider the possibility that the US Federal Reserve may begin to pull out of its quantitative easing program aimed at increasing liquidity. Although some, including the $ 7.5 billion hedge fund Skybridge Capital, whose bitcoin holdings exceed $ 310 million, say that the reduction in US monetary policy is unlikely to affect crypto and gold. , arguing that these asset classes have resilience.
Meanwhile, Deutsche Bank, Germany’s largest lender, said the United States could experience one of the worst periods of inflation in its history, with government spending and lax monetary policy likely catalysts. to create conditions last seen in the 1940s and 1970s.
“While long-term fundamentals remain intact, US monetary and macroeconomic policy is causing short-term concerns,” Chu said. Indeed, investors have shed some of their investments in hopes of entering lower levels as US monetary and fiscal policy becomes more precise, the managing partner said.
Other notable cryptos were also trading in the red, with the top 10 by market cap falling between 7.3% and 12.9% in the previous 24 hours. Polkadot and XRP were the hardest hit, down 12.93% and 11.39% respectively.
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