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Bitcoin falls to $25,000 and affects the market

Bitcoin falls to $25,000 and affects the market


0h30 ▪
3
min read ▪ with
Luke Jose A.

Bitcoin price fell to $25,000, contrary to the bullish sentiment announced in the flagship crypto market. This drop may have been caused by some recent events, which affected the price of other leading currencies.

Going Bitcoin: a tidal wave…

Although many analysts were counting, a few hours ago, on the rise in bitcoin prices, the latter is falling. The cryptocurrency flagship falls to $25,000, continuing the momentum of a dizzying decline that has been underway in recent weeks.

The least that can be said about this drop is that it is significant. Within 24 hours, BTC lost 4.25% of its valuation. This figure represents a fall of 5.52% at the end of last week.

The asset registers its lowest level since the high of $30,000 it reached in April. How to explain such unexpected underperformance? And was this decline really as unpredictable as it seems? Truth be told, not really.

The pressure on the bitcoin market could be due to several events that affected the cryptocurrency industry this week. The latest is about Moody’s and its growth outlook for Coinbase.

For collateral damage

The rating agency downgraded its projections for the cryptocurrency firm from stable to negative. As a result, Coinbase’s stock price dropped 90%. An unprecedented case, closely related to the lawsuits brought by the SEC against the company.

“The change in outlook from stable to negative reflects the uncertain extent of the impact the SEC fees will have on Coinbase’s business model and cash flow”wrote Moody’s experts.

Analysts are unanimous: the allegations against Coinbase, but also Binance, are putting the cryptocurrency market to the test. It remains two of the most important businesses in the crypto market to be attacked.

But the lawsuits against the latter do not extend to other major platforms and their respective native cryptocurrencies. This is the case of Ethereum, XRP, Cardano, Dogecoin, Polygon or even Solana.

They all lose valuation between 10% and 25%. This, just like bitcoin, in just a few hours. This is absolutely a tidal wave on the crypto industry. An event whose effects are now captured by America’s financial gloom.

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Luke Jose A. avatar

Luke Jose A.

A graduate of Sciences Po Toulouse and holder of a blockchain consulting certificate issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the blockchain’s ability to change many sectors of the economy, I took the commitment to raise awareness and to inform the general public about this ever-changing ecosystem. My goal is to enable everyone to better understand the blockchain and seize the opportunities it offers. I strive every day to provide objective analysis of the news, to understand market trends, to communicate the latest technological innovations and to put into perspective the economic and societal challenges of this ongoing revolution.

DENIAL

The views and opinions expressed in this article are the sole responsibility of the author, and should not be considered investment advice. Do your own research before making any investment decision.

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