With the hike in Bitcoin, over 127,000 traders lost against the Crypto market. It was recently traded at $19.8K and up more than 3%.
However, it had been stuck in a tight range between $19,000 and $21,000 for the majority of last month. This was due to uncontrollable inflation and the looming severe recession.
Big cryptocurrencies like Ether followed suit, which plunged before quickly hitting the downward button. It was revealed that it was trading below $1,300.
Hike Effect on Bitcoin
Over 127,000 traders who were primarily betting against the increase were liquidated. According to Labor Department data released on Thursday, consumer prices decreased from the previous month, with the inflation rate still high.
On Thursday afternoon, Bitcoin fell by almost 3% to its lowest level since September 21. However, Bitcoin has recovered some of its losses.
The Federal Reserve has tried to stop the high inflation, but it has seen down prices for financial assets as risky. Now crypto traders regularly monitor monthly inflation numbers.
As everyone is aggressively combating inflation by hiking its rates, it has however worsened the situation in the Crypto market.
Final Note
This year has been tough for Bitcoin as it had a sharp decline. There is the possibility that it may continue to be under pressure as traders need to worry about high-interest rates by the Federal Reserve.
This has driven many investors in digital assets away from the market and from day trading. Especially investors who just entered the market. Retail investors are also on their heels away from the market.
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