Bitcoin set to remain under pressure from central bank monetary tightening
The price of Bitcoin (BTC/USD) has been coming back to work a major support level at $30,000 since last week. Penalized by the reduction of liquidity in the financial markets due to the extremely rapid monetary tightening of central banks, the cryptocurrency market is also penalized at the moment by very bad news such as the crashes of the cryptocurrencies Luna and the stablecoin Terra USD.
The Luna cryptocurrency, which traded at almost $80 at the start of the month with a market capitalization of $27 billion (more than companies like Société Générale, Michelin or Thales), collapsed in a matter of days. to be worth just $800 million.
As for the UST, which was backed by the dollar (1$ = 1UST) with a market capitalization of 17 billion dollars, it collapsed by 97% in a few days for still unclear reasons, wreaking havoc among savers. who counted on the stability of the UST.
These huge scandals inevitably affect the confidence of speculators in the cryptocurrency market, further darkening the already bleak outlook due to tight monetary policies.
Bitcoin (BTC/USD) daily price chart – key levels