12-08-2022 icon

Value of Bitcoin currently down, here’s why

By Lucy Adegbe

The largest cryptocurrency by market cap bitcoin trading rate has been dropping slowly in its bullish strength to attain a new month’s bottom of $16,736 on the third day of December.

This action comes after an all-around market plunge that saw a crash in the price of bitcoin caused by the recent FTX insolvency situation.

Currently, the trade rate of bitcoin maintains a relative correlation with equities and commodities exchange investors have expressed worries concerning the guideline debate on the upcoming Federal Open Market Committee (FOMC) summit scheduled for December 13.

While a number of reviewers speculate bitcoin’s lowest price point is near, others predict more drawbacks are coming as a result of bitcoin’s similar movement with equities and DXY.

Here is a justification for bitcoin’s price current plunge

Increased interest rate in diverse regions Is displacing Bitcoin trade 

Citing the price index statement, inflationary pressure in the US saw a 0.4% upsurge in October in comparison with the month before, causing a raise in interest rates.

The statement showed a year-on-year increase to 7.7% in the past October and the price of bitcoin is likely to remain unstable pending the next scheduled price index statement event on December 13.

Will Bitcoin come back soon?

Blockchain computation revealed that the trade rate of bitcoin is also responding to the strain caused by FTX alongside the disclosed analysis that the coin’s lowest point has been reached.

Amid all uncertainties, many investors have been glued to the long-term view with 91% of corporate investors considering ventures into tokenized properties in the latter years,  as cited on BNY Mellon’s authorized poll results revealed by the institution’s chair Robin Vince.

In the long run, the crypto community still anticipates the value of bitcoin to increase as digital assets are gaining more acceptance daily.