Greatest bitcoin sale in a year!

Greatest bitcoin sale in a year!

What happened?

Bitcoin has fallen enormously amid the wider sell-off in risk assets. The cryptocurrency plunged by nearly 20% this week, marking the largest drop since March. It was mostly driven by an increase in US bond yields. Investors worry that rising yields will push the Fed to tighten support measures which will add pressure on the riskier assets. Therefore, traders are reconsidering their positions on assets.

Concerns over BTC’s efficacy against inflation

The fact that Bitcoin follows risk assets in falling raised questions about its role of hedge against inflation, which actually has been a key reason to buy BTC over the past year. Some investors believe that the surge of cryptocurrencies is just a speculative bubble, which may repeat the story of the 2017 boom and bust.

Musk was the first who sent BTC down

Actually, the BTC’s fall was initially caused by Elon Muck, who tweeted that BTC and ETH prices “seem high”. Then, the sell-off in risk assets reinforced the already fragile crypto. Besides, earlier this week, Bill Gates mentioned that he wasn’t a big fan of Bitcoin. In addition, Treasury Secretary Janet Yellen claimed that BTC was an “extremely inefficient way of conducting transactions.”

What’s next?

After a large drop will come even a larger rise eventually. We see how big corporations start allowing their customers to pay and receive cryptocurrencies through their platforms such as Apple, Tesla, and MasterCard. Major banks like JPMorgan and Goldman Sachs are also active in blockchain as well. Therefore, after a short fall the BTC may go up again to the record highs. The good news for FBS traders is that they can make both buy and sell trades. So a trader doesn’t need to hold already an asset to sell it. Thus, traders have a chance to profit in case of either outcome.

IMG_20210226_141610.658.jpg

Don't know how to trade cryptocurrencies? Here are some simple steps.

  1. Download the FBS Trader app. 
  2. Open an account.
  3. Start trading!

Similar

Inflation Risks Return To The Markets
Inflation Risks Return To The Markets

Lagarde says difficult times have come, and the ECB raised the rate not to cause a recession but to stabilize prices. Read the report to learn the freshest news of the day!

ECB Key Rate is in Focus
ECB Key Rate is in Focus

ECB is ready to take the decision about the key rate. What to expect from officials? Oil prices are high, and economy indicators demonstrate the slowing down in the strongest European economies.

What Will the Fed Decide?
What Will the Fed Decide?

The Fed is going to take a decision about the interest rate. This is the crucial news for the following week. What's going on in the markets and what to expect?

Latest news

Fed’s Rate Pause and UK Inflation Slows
Fed’s Rate Pause and UK Inflation Slows

Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera