Cryptocurrency markets remain very volatile after one of the largest cryptocurrency exchanges, FTX, announced its bankruptcy. The value of Bitcoin in the last seven days was mostly around 16.5 thousand dollars.
Bitcoin at lowest levels
The oldest and most popular cryptocurrency Bitcoin has been trading at its lowest levels since November 2020 in recent days. Bitcoin is thus at two-year lows. At the same time, a year ago, its value was just under 60 thousand dollars. Over the past 12 months, Bitcoin has thus lost about 72 percent.
Ethereum is also registering a decline
The second most widely used cryptocurrency, Ethereum, also experienced practically the same drop, which is at its weakest levels since around mid-January 2021. A year ago, Ethereum was trading around $4,300, today it is fighting for the $1,200 mark.
Market expectations that the US central bank will raise interest rates less than it has done so far in December may give some hope to cryptocurrencies. But the Fed’s decision will depend on the development of inflation itself, on whether inflationary pressures ease, especially in the form of an increase in wage demands.