The world’s top cryptocurrency by market cap, Bitcoin, has hit the $18,000 mark and is still dropping. The crypto has dipped by 6% within the last 24 hours and more in the previous week. BTC/USD breached the $19,000 triple bottom support when it crashed from $20,000 to $18,000, signaling a major selling sentiment among Investors. Bitcoin Hits $18,000 There are several reasons for Bitcoin’s bearish run, but most refer back to the Federal Reserve’s aggressive approach to inflation. Rising Bond Yields: the US 10-year bond yield has risen 3.25% since June, as sell-offs continue to increase. Investors are playing it safe as a result. Thus they are avoiding the more volatile assets like Bitcoin, which is putting more downward pressure on the digital asset’s price. Fed’s Hawkish Policies: Jerome Powell, head of the Federal Reserves, is staying true to his predecessor’s aggressive approach to inflation, raising interest rates. It appears he is not about to slack off as he reiterated his goal of strengthening the dollar to fight inflation. At writing, the dollar has hit a 20-year high, adversely affecting the price of Bitcoin as well. And finally: Nord Stream 1 Shutdown: Since Russia closed off the Nord Stream 1 pipeline, gas flow to Europe is on hold. This has scared the market and is causing Bitcoin trading to the tank. Tech Equities Are Equally Dropping As the Fed continues to increase interest ra...
