Bitcoin Plunges Below $20,000 Again As ECB Gears Up To Raise Rates ‘At A Faster Pace’

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Bitcoin Plunges Below $20,000 Again As ECB Gears Up To Raise Rates ‘At A Faster Pace’

Á miðvikudag, Bitcoin fell as low as $19,899 following a risk-off by investors after a volatile New York session on Tuesday. Ethereum dipped by over 9% to $1,114 with other cryptos such as Solana and Shiba Inu plunging by over 10%. Technology stocks led the overnight carnage with the high beta Nasdaq 100 Index (NDX) dropping close to 4% before market close.

Mikil lækkun var kveikt af ofgnótt af þáttum, þar á meðal lykilatriði, yfirlýsingu Seðlabanka Evrópu. Christine Lagarde forseti detailing a plan to go harder on inflation. Bitcoin and other cryptocurrency investors have particularly been attentive to inflation rate decisions, with major asset classes balking at the prospects of further monetary tightening to tame soaring prices.

Í yfirlýsingunni á þriðjudag ítrekaði Lagarde skuldbindingu sína um að draga úr verðbólguþrýstingi og sagði að þrátt fyrir undirliggjandi efnahagslega óvissu „er ekki hægt að skilgreina hraða eðlilegrar vaxtastigs fyrirfram.

Þar af leiðandi sagði hún að bankinn ætlaði að hækka meginvextina þrjá um 25 punkta á næsta fundi þann 21. júlí eftir að örvunaráætlun sinni um skuldabréfakaup lýkur. Síðasta skiptið sem bankinn hækkaði vexti á evrusvæðinu var árið 2011. Hins vegar benti framkvæmdastjóri ECB á að „ef verðbólguhorfur til meðallangs tíma haldast við eða versna, mun meiri hækkun eiga við á septemberfundinum,“ sem gefur til kynna að meiri áhugi vaxtahækkanir gætu verið framundan.

Undanfarna tvo mánuði, Bitcoin miners have also been að henda verðlaunum sínum amid plunging profitability and soaring energy prices. According to a report by Arcane Research, May witnessed the biggest sell-off by miners since 2020 with several publicly listed bitcoin mining firms offloading 100% of their May rewards. While dumping by miners has historically signaled the market is entering the final capitulation phase, efforts by miners to sell their BTC in large quantities could negatively affect the cryptocurrency’s price.

BTCUSD Mynd eftir TradingView

Technically, although Bitcoin looks quite weak in the $20ks, there is so much hope by various analysts that the verð gæti hækkað from here. As of writing, Bitcoin is trading at 20,023 after losing over 4.53% in the past 24 hours. A break below the $20,000 and 2018’s high of $19,798 could trigger a deeper sell-off, potentially sending prices to sub-$17k.The sharp drop was triggered by a plethora of factors, key among them, a statement by the European Central Bank President Christine Lagarde

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