Bitcoin’s price has fallen to its lowest level in over a week as traders look down on prospects of a change in US monetary policy and further tightening of cryptocurrency regulation in China.
On Monday at 20:00 UTC, the price of the world’s leading crypto began to drop from around $ 35,466 to a low of $ 33,221. The prices have increased slightly every hour, and you Bitcoin changed hands for approximately $ 33,793 at the time of publication.
The move marked the bulls’ biggest single daily loss after losing 6.2%, the strongest since May 28, amid selling pressures exacerbated by easing bullish investor sentiment.
Some point to continued pressure from mainland China on crypto mining operations and trades where Weibo accounts have been blocked by key opinion leaders in the crypto space.
“China continues to put pressure on crypto with rolling mining bans and is deleting its most popular social media platform, Weibo, from crypto influencer accounts,” said Jehan Chu, managing partner of Hong Kong-based crypto investment firm Kenetic Capital. “This signals a tightening noose around crypto on the mainland.”
Markets around the world have also traded on shaky ground as investors envision the possibility that the US Federal Reserve may begin to pull away from its liquidity-enhancing quantitative easing program. Some, including the $ 7.5 billion hedge fund Skybridge Capital, which has Bitcoin holdings over $ 310 million, say the US monetary policy tightening will not affect crypto and gold, arguing that these asset classes own elasticity.
Meanwhile, Deutsche Bank, Germany’s largest lender, has announced that the US will be one of its worst periods of inflation in history, with government spending and loose monetary policy likely to have been catalysts for condition creation last seen in the 1940s and 1970s.
“While long-term fundamentals remain intact, US monetary and macro policies are causing short-term nervousness,” said Chu. In fact, investors have dumped some of their investments in hopes of getting in at lower points with clearer US monetary and fiscal policies, 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% over the past 24 hours. Polkadot and XRP were hardest hit with a decrease of 12.93% and 11.39%, respectively.