Bitcoin price take sharp plummet, hits lowest price since mid-March

The world's most valuable digital cryptocurrency price has dropped below $40,000, marking its lowest point since mid-March.

@JakConnorTT
Published Tue, Apr 12 2022 3:02 AM CDT   |   Updated Wed, May 4 2022 11:06 AM CDT

Bitcoin's price has taken a tumble as the world's most valuable digital cryptocurrency drops below the $40,000 mark.

Bitcoin price take sharp plummet, hits lowest price since mid-March 21 | TweakTown.com
VIEW GALLERY - 2 IMAGES

After being on an overall steady uptrend since plummeting to $34,000 back in January, Bitcoin has been slowly climbing in price for the majority of 2022 and even managed to slightly end its side-ways momentum by breaking the $37,000 to $45,000 range by hitting $48,000 on March 28. The new milestone in its recovery back to its all-time high of $69,000 seemingly triggered a sell-off on March 30 that has yet to stop.

Since April 5, the price of Bitcoin has been tumbling back down to prices that were seen throughout the last half of February and the majority of March, with the digital currency currently sitting at approximately $39,000 at the time of writing this article. Charlie Silver, CEO & Chairman of Permission.io, was asked by Forbes to comment on the recent price drop and why it has occurred.

Bitcoin price take sharp plummet, hits lowest price since mid-March 10 | TweakTown.com

"The Fed in the US has made it clear that they believe risk assets need to come down and has shouted from the rooftops that the interest rates are going much higher, which is bad for prices. I believe The Federal Reserve's current behavior is a major factor at play here. Earlier this week, the Fed announced that it would be reducing the central bank's balance sheet by 'trillions of dollars' in bond holdings by approx. $95 billion a month - this is an extremely aggressive balance reduction in the central bank's attempts to tighten its monetary policy with inflation rising," said Silver.

Martha Reyes, head of research at digital asset prime brokerage and exchange Bequant, said, "Digital assets pulled back as we hit peak inflation and rate hike concerns while growth is expected to slow. Inflation data comes out this week but that is a lagging, not a leading indicator. Our main concern at this point is growth which would continue to hurt risk assets."

Despite the decrease in Bitcoin's price, cryptocurrency still continues to be adopted, "Crypto is steadily building out as evidenced by wider payments integration". Noting, "regulation can still be a catalyst, particularly the approval of a spot etf in the US. If inflation does persist, then developing nations will embrace crypto even more."

Jak's Top Recommended Articles:

Read more: Man photographs ISS from Earth's surface, captures astronauts in space

Read more: NASA confirms 1,000+ foot-wide asteroid will approach Earth this April

Read more: Russia abandons Chernobyl after troops suffer radiation poisoning

Read more: Ukraine official warns the fires near Chernobyl could impact the world

Buy at Amazon

The Bitcoin Standard: The Decentralized Alternative to Central Banking

TodayYesterday7 days ago30 days ago
$13.89$13.89$13.89
* Prices last scanned on 7/6/2022 at 11:27 pm CDT - prices may not be accurate, click links above for the latest price. We may earn an affiliate commission.
NEWS SOURCES:forbes.com, decrypt.co

Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science and space news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms. Instead of typical FPS, Jak holds a very special spot in his heart for RTS games.

Newsletter Subscription

Related Tags

Newsletter Subscription
Latest News
View More News
Latest Reviews
View More Reviews
Latest Articles
View More Articles