The first cryptocurrency tested at least below $ 42K, although it climbed above $ 57K on Friday.
The fall in bitcoin started in the American session on Friday, along with stock markets and oil. Then the first cryptocurrency broke through November lows just above $ 53K, but by the end of the day, part of the fall was bought back.
Bitcoin's plunge accelerated around 7 Moscow time on Saturday, when Bitcoin broke Friday's lows and fell $ 10,000 in less than an hour.
Bitcoin fell after the stock exchanges on the Treasury inversion and the speech of the head of the IMF, writes cryptor. Investors are leaving risky assets after receiving signals about the Fed's monetary tightening.
Every economic crisis that led to a sharp drop in stocks by 30-50% and bitcoins by 50-80% began with an inversion of US government bonds - Treasury bonds. It consisted of an increase in the yield on 2-year short-term securities over 10-year long-term securities. The current reversal occurred at the end of November and rose strongly towards the end of this week.
Kristalina Georgieva's speech was another reason for the negative. The head of the IMF directly advised the US Federal Reserve to raise rates and cut the quantitative easing program. Tightening monetary policy to tackle inflation deprives markets of debt capital inflows that are beneficial for investment during a zero-rate period.
Investors are waiting for the acceleration of the folding of QE at the next Fed meeting on December 14-15. This was directly pointed out by the head of the Fed, Jerome Powell, speaking on Wednesday in Congress.
“Retail and short-term cryptocurrency investors have benefited from a very successful year. At the same time, it is hardly fair to talk about some kind of fundamental breakdown of the bullish trend, "- said the team of analysts at GravityPlus.