Bitcoin Drops to $66,600 Amid Fed Tightening Expectations

© изображение сгенерировано ИИ

The price of Bitcoin, the leading cryptocurrency, has plunged to $66,600, according to trading data. This level marks a new local low, and for the first time since November 5, 2024, the BTC rate has dropped below $68,000.

In this context, most digital assets have also come under pressure: Ethereum has broken through the $2,000 mark, losing about 30% of its value since the beginning of the year. Over the past 24 hours, both Bitcoin and Ethereum have dropped by about 8% each.

The total market capitalization of the cryptocurrency market has fallen to approximately $2.4 trillion, the lowest level since November last year.

Analysts at Reuters agency link the current correction to the appointment of American economist Kevin Warsh as Chairman of the US Federal Reserve. Market participants fear that under his leadership, the Fed may begin to reduce its balance sheet, which would lower the level of liquidity that previously supported the growth of digital assets.

Earlier, cryptocurrencies had shown positive dynamics amid expectations of continued stimulus from the US regulator.