Bitcoin edged closer to falling below the $70,000 level on Thursday, as there were no signs that the sell-off in the world’s largest cryptocurrency was easing.
اضافة اعلان
Bitcoin fell by more than 3% in Asian trading to $70,052.38, its lowest level since November 2024.
Ether, the world’s second-largest cryptocurrency, also declined by nearly 2% to $2,086.11. A drop below the $2,000 level would mark its first such decline since May of last year, according to Reuters.
The latest sharp and rapid decline in cryptocurrencies, analysts say, was triggered by the nomination of Kevin Warsh as the next Chairman of the U.S. Federal Reserve, amid expectations that he would pursue a tighter monetary policy.
Bitcoin has already fallen by more than 7% over the past week, bringing its losses since the start of the year to nearly 20%, while Ether has dropped by almost 30% so far this year.
Bitcoin is down more than 40% from its October 2025 peak of $126,000.
Manuel Villegas Franceschi from the Next Generation Research team at Julius Baer said: “The market fears that Warsh will adopt a hawkish stance. Balance sheet reduction will not provide any supportive factors for cryptocurrencies.”
Cryptocurrencies are widely seen as beneficiaries of an expanded balance sheet, as they tend to rise when the U.S. central bank injects liquidity into financial markets—an environment that typically supports speculative assets.
Al Arabiya.net
