Bitcoin Temporarily Slips Below $25,000
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After the Federal Reserve’s June meeting, cryptocurrency prices fell, with Bitcoin Temporarily Slips Below $25000 for the first time since March.
According to Coin Metrics, Bitcoin Temporarily Slips Below $25000 and sometimes fell by more than 1% on Thursday to $25,439.77. The price of bitcoin had previously fallen to $24,766.52. The price of ether fell by more than 3% to $1,667.56.
There was also a decline in altcoins. The value of Solana’s token decreased by 2.3%, Polygon’s token declined by 8.3%, and Cardano’s token declined by 3.5%.
Moreover, selling pressure weighed on Tether (USDT), which lost its peg to the U.S. dollar on most exchanges, falling to 99 cents in its biggest drop since November as Bitcoin Temporarily Slips Below $25000.
As traders speculated about the possibility of the first spot bitcoin ETF in the United States, Bitcoin cut most of its losses in the afternoon following a CoinDesk report stating that BlackRock, the world’s largest asset manager, is close to filing an application for a bitcoin ETF.
However, the report lacked details and did not specify how it would obtain exposure to bitcoin – whether by tracking spot bitcoin or bitcoin futures prices.
Initially, the slide began late Wednesday, following the Federal Reserve’s June meeting, when it decided to leave interest rates unchanged for now, but hinted at two additional increases by the end of the year.
Accordig to Michael Safai, managing partner at Dexterity Capital, “this is less related to the FOMC and more related to thinner liquidity and weak sentiment.” Currently, thin trading volumes are sufficient to trigger liquidations even if a sizable (but not massive) sell order is placed.
As a result, traders will be more inclined to keep their money off the table when faced with regulatory backlash, especially when it comes to altcoins, so there will not be much new capital flowing into the market to boost prices,” he said.
As a result of the Securities and Exchange Commission’s suit against Coinbase and Binance, and the questioning of the regulatory status of several popular coins it deemed “crypto asset securities,” price action has been tepid and sentiment has been negative this week.
Regulators have been cracking down on crypto assets since the beginning of the year, and that was the latest development in that crackdown and after Bitcoin Temporarily Slips Below $25000.
There is further confusion about the legality of popular altcoins because Bitcoin Temporarily Slips Below $25000 , which is keeping capital on the sidelines. It will take a long period of good news or no news before traders are excited about a recovery, Safai said.
Bitcoin Temporarily Slips Below $25000 and normally prices will be relatively range bound between $25,000 and $27,000 until the next set of regulatory headlines indicates whether we will be heading toward resolution or further obfuscation.”
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What Tether Is?
Tether is a digital asset that aims to maintain a value that is stable relative to the US dollar, making it a stablecoin. In contrast to other digital assets, it’s worth is ‘backed’ by the actual value of the U.S. dollar.
In other words, one Tether token is equivalent to one U.S. dollar. In this approach, people can easily make use of a digital asset that is built to maintain its worth.
The reason for Tether’s price falling below its USD peg
In the recent market turbulence, the value of Tether’s stablecoin has fallen as a result of market turbulence affecting the dollar. A major contributing factor is the increasing demand for digital assets as more individuals and institutions enter the market.
It is possible that the influx of new investors may result in a shortage of Tether tokens due to the fact that there are simply not enough available in circulation to meet the demand. Consequently, the price falls below the USD peg as a result of this downward pressure.
Furthermore, investors may be seeking out more traditional forms of safe haven investments like gold or government bonds, given the persistent uncertainty surrounding global economic conditions.
Bitcoin Temporarily Slips Below $25000 for a While, and What Does It Mean?
However, investors should keep in mind that Bitcoin is still a relatively new asset class that is very volatile. The fact that Bitcoin Temporarily Slips Below $25000 does not indicate a crash is imminent.
Bitcoin’s steadfast foundations ensure its continued success, and the cryptocurrency is gaining popularity around the world. Bitcoin is still anticipated to be a great asset in the long run.
