Bitcoin and the digital currency market have failed to maintain last week’s uptrend, largely due to macroeconomic factors such as correlations with the stock market index. However, the Fed’s monetary policy has also had a strong impact on the downturn.
Bitcoin, the largest digital currency in terms of market value, was trading at about $ 39,000 at the time of writing and fell below $ 40,000 for the first time since Monday. At the same time, the global stock market is declining due to the war in Ukraine.
Bitcoin suffered an unstable trend last week, and the volume of purchase orders also increased due to the jump from Monday to Wednesday, which raised the price from $ 38,000 to over $ 45,000. However, the correlation of bitcoin with the stock market, which has almost disappeared in recent days, yesterday rose again and the price began to fall in line with the global stock market.
The stock market index shows that the Nasdaq index (NASDQ) fell another 2% on Friday, and the “S & P500” index fell 1%. The performance of the stock markets in Europe is much worse, as the Dex index (DAX), which tracks the condition of the 30 largest companies on the Frankfurt Stock Exchange, is 4.4%, the French stock market index is CAC 40.5% . and the stock market. Italy fell more than 6 percent.
US Federal Reserve Chairman Jerome Powell said on Tuesday that bank interest rates would rise by 0.25 percent by the end of this month (early April), despite fears about the economic impact of the Russia-Ukraine war. The US Federal Reserve did not need more reasons to pursue a shrinking monetary policy, but yesterday’s report on the employment situation in the country provided a good excuse for the Federal Reserve. These figures show that, contrary to expectations, in February (February), instead of the 400,000 jobs that experts predicted, 678,000 jobs were created in the United States.
A Bloomberg report on Friday added that the Biden administration was considering a ban on oil imports from Russia. This helped raise oil prices; West Texas Intermediate (WTI) rose 7.1% to $ 115.35 a barrel.
The publication Investigating the reasons for the fall of Bitcoin yesterday; Prices continue to be influenced by other markets that first appeared on Digital Currency.