Bitcoin (BTC) dips below US$30,000, sliding for seventh straight week

May 16, 2022 10:02 AM PDT | By Rupam Roy

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Bitcoin (BTC) dips below US$30,000, sliding for seventh straight week — Image source: © gopixa | Megapixl.com

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Highlights:

Bitcoin (BTC) traded below the US$30,000 mark on Monday, continuing its decline.

Bitcoin prices were down for the seventh consecutive week for the first time.

Bitcoin hit an all-time high of US$68,789.63 in November 2021.

The crypto market has been retreating in recent weeks amid various political and economic uncertainties. On Monday morning, the market was down 0.89% to US$1.28 trillion.

Bitcoin (BTC), the world’s largest cryptocurrency, fell for the seventh consecutive week for the first time amid a broader market turmoil. The Fed’s interest rate hikes, higher inflation, and expected new crypto law may have weighed on the market sentiment.

Also Read: Why is Step App (FITFI) crypto up 200%?

Bitcoin traded at around US$47,000 in mid-March this year after declining to about US$37,000 from its all-time high of US$68,789.63 on November 10, 2021. But since March, the downhill slide accelerated, falling to as low as US$26,350.49 last week.

VIDEO: https://www.youtube.com/watch?v=dyZYR1wGqOw

On Friday, it recovered some of its losses when it traded above US$30,000. But on Monday, it fell again below the US$30,000 mark. BTC was down 1.11% to US$29.843.32 at 9:35 am ET. Given the market uncertainties, analysts anticipate Bitcoin could fall to nearly US$20,000.

Bitcoin’s decline last week was blamed on the sharp fall of the Tether (USDT) stablecoin from its dollar-pegged price after stablecoin TerraUSD (UST) and its sister-token LUNA nosedived.

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The crypto market generally moves in tandem with the global equities market, mainly the rate-risk prone mega-cap technology stocks as witnessed in recent months.

BTC was earlier considered as a hedge against inflation - a digital asset that would protect against the diminished purchasing power of currencies and other securities.

However, it has so far failed to achieve that purpose. Experts anticipate that investors could sell their Bitcoin holdings at the first opportunity or when the prices improve from their latest dip.

Also Read: Why is THORChain (RUNE) crypto rising?

Image Description: Bitcoin traded below US$30,000 on Monday

Bottom line:

Higher inflation and rate hike fears may have dragged down the crypto market. The Federal Reserve has raised the interest rates by 50 basis points in May, after a 25-basis point hike in March. It was the Fed’s highest rate hike since 2000.

Also Read: Emirates airline seeks to entice flyers with Bitcoin payment facility

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