Bitcoin fell for the seventh consecutive day, marking the longest losing streak since 2018, as the cryptocurrency market struggled with new strains of Covid-19, inflation and strong policy decisions.
Due to strong sales, attributed to these factors, bitcoin fell as low as $ 40,800 at one point, representing a daily decline of 2.3%. The cryptocurrency rose to about $ 41,664, still down nearly 1%.
The lost Bitcoin streak is the longest on record from the downturn from 30 July to 4 August 2018. At the time, the digital currency slipped 17%, and other losses eventually limited bitcoin tokens to $ 3,200 before gaining support.
The latest decline comes amid a challenging backdrop for financial markets and primarily the (likely) decision by the US Federal Reserve to take more aggressive action to tackle inflation which is now at its highest level in almost four decades.
Bitcoin would benefit from monetary policy in recent years ultra-free from the diet since the coronavirus hit the economy, this reversal is considered a new problem for bitcoin and the cryptocurrency market in general.
This fall in Bitcoin is also a failure for the cryptocurrency, which has failed to position itself as an inflation protection asset.