Digital Gold Plunges Amid Tightening Monetary Policy
The price of Bitcoin on major cryptocurrency exchanges has sharply declined to $82,134, updating a 9-month low. The drop occurred against the backdrop of increasing macroeconomic instability and the tightening of the U.S. Federal Reserve's monetary policy.
According to the Coinglass analytics platform, record cryptocurrency position liquidations of about $1.7 billion were recorded in the last 24 hours. Traders using high leverage were hit the hardest. Such liquidations often provoke further price declines in cryptocurrencies.
Analysts link the Bitcoin crash to the Fed's decisions to raise the key rate and statements by President Donald Trump about a possible replacement of Fed Chairman Jerome Powell. This is increasing geopolitical instability and uncertainty in the financial markets.
Despite the short-term decline, most experts maintain a long-term bullish forecast for Bitcoin. They note that the current $80-$85,000 levels may become attractive for new investors who believe in the long-term potential of cryptocurrencies.