09.09.2024. / 9:51
WASHINGTON – The price of bitcoin fell below $53,000, its lowest value since August 5. The world’s largest cryptocurrency has lost almost seven percent of its value in the last seven days, and its current market valuation is around 1.07 billion dollars.
PHOTO: Pxabay
On Sunday evening, bitcoin was worth around $54,400, and a technical indicator called the Chande Momentum Oscillator (CMO) signals a possible price reversal. According to the CryptoNews portal, it is expected that the price of BTC in the coming days may reach from 57,500 to 65,000 dollars.
Ethereum, the world’s largest altcoin, also saw a drop to $2,172. In the last week, ETH has fallen by 8.7 percent, so its market valuation is currently close to 274 billion dollars.
The sharp sell-off of cryptocurrencies followed a sharp decline in the shares of major technology companies in the United States – shares of electric car maker Tesla fell 8.45 percent, while chip maker Nvidia lost 4.1 percent. Google’s parent company Alphabet had a decline of four percent.
The tech-heavy Nasdaq Composite fell 436 points, or 2.55 percent, on Friday, and posted a 5.8 percent drop for the week, its worst weekly performance since 2022.
Previously, at the end of August, the price of bitcoin jumped to 65,000 US dollars, and this significant growth followed the announcement by the Federal Reserve that interest rate cuts could soon follow. The positive market reaction highlights the impact of these statements on bitcoin and the broader cryptocurrency sector.
At that time, it was also forecast that bitcoin could reach a value of 84,000 dollars by mid-September.
However, less than a month earlier, on August 4 and 5, the cryptocurrency market, following a sharp decline in the main stock indices, primarily in the United States of America and Asia, experienced a breakdown not seen for more than two years. Bitcoin then lost almost 15 percent of its value in 24 hours, while ethereum was in the daily minus of as much as 22 percent.
The world’s main cryptocurrency exchanges estimated that around 367 billion dollars were wiped off the market in one day, after an extremely successful first part of the year.
“Billions of dollars were wiped from the accounts of leading business leaders such as Jeff Bezos (Jeff Bezos), Mark Zuckerberg (Mark Zuckerberg), the owner of Nvidia and other technology companies. This situation is not directly related to cryptocurrencies, but fear and panic among investors has led to massive selling of all forms of assets, including cryptocurrencies, in order to move to something safer and have liquid cash. Igor Mirković, mass media manager at the first Serbian crypto exchange ECD, told Biznis.rs on that occasion.
He reminded that cryptocurrencies are often seen as protection against market uncertainties, but they are also subject to short-term fluctuations. Unfavorable events, such as announced war conflicts, recession or weak economic results shown by individual countries further worsened the situation, and another turning point could be the presidential elections in the USA scheduled for November 5.
“Although he is a politician and his statements should be taken with a grain of salt, Trump’s pro-crypto policies can bring positive changes for the cryptocurrency market. His support for bitcoin and the crypto industry (in the past) has caused a positive response from buyers and a rise in the price of bitcoin, and promises, although perhaps overly optimistic, bring hope for more favorable regulatory conditions and greater adoption of cryptocurrencies. No concrete views on cryptocurrencies have yet come from the alternative“, notes Mirković.
Trump has promised that the US will keep 100 percent of the bitcoins currently held by the Federal Reserve, effectively treating this digital token as a national asset.
Among other things, he expressed his belief that bitcoin will one day overtake the market capitalization of gold.
Trump has made it clear that while he is president there will be no central bank digital currency (CBDC) in the United States of America.
In the latest issue of Macroeconomic Analysis and Trends (MAT), Katarina Stančić reminds that, as a reaction to cryptocurrencies, the idea came up that states could also issue a technologically competitive means of payment, more precisely digital money (CBDC as an abbreviation of Central Bank Digital Currency).
„It is a national currency issued in digital form, which compares 1 to 1 with paper banknotes and is not kept in a bank account but in a ‘digital wallet’. Digital money is presented to users as a supplement to cash and cards, a means of payment that does not carry the costs of transactions and account maintenance and enables financial inclusion, since it can be used by ‘less financially literate’ users, i.e. even persons who do not have a bank account. , explains Stančić.
She adds that, according to Atlantic Council data, 134 countries are currently researching and testing the introduction of digital currencies, three countries have fully implemented it (Jamaica, the Bahamas and Nigeria), and the BRICS countries are in the pilot phase of testing, which also includes cross-border payments. Business. Rs
Source: www.capital.ba
