Bitcoin, the world’s largest cryptocurrency, fell to $29,555.35, signaling a 6.9% decline. The decline means the cryptocurrency lost $2,262.81 from its previous closing price.
Since hitting an all-time in 2021, the cryptocurrency has faced a shocking decline that has caused its market capitalization to fall.
Experts blame several reasons for Bitcoin’s decline, including stricter laws expected from the government and investors selling risky assets, but the worst is yet to come, as analysts predict further declines in the value of the cryptocurrency before normalcy can return.
In his assessment, Sam Rule, market analyst for Bitcoin Magazine, cited a wide range of macroeconomic variables behind Bitcoin’s decline.
“Rising rates, a historic pace of monetary policy tightening to combat unprecedented levels of inflation, a strengthening U.S. Dollar versus other global currencies and a deterioration in global growth outlooks are all macroeconomics forces at play that are driving bitcoin lower,” Rule said.