Why Bitcoin Has Fallen in Price

The leading cryptocurrency has fallen in price from $60,000 to $59,200 at the end of August. And not only Bitcoin. Of the top ten largest cryptocurrencies, Solana (SOL) and Dogecoin (DOGE) have fallen the most — by 8% and 6%, respectively. Some analysts believe that this is a natural process: August and September are historically weak months for the crypto market, and growth should not be expected during this period.


However, it seems to me that it is difficult to call the reasons that caused the fall of the cryptocurrency market natural. Among the main theses, one can only highlight the bankruptcy of FTX. Now we are reaping the fruits of investor mistrust.


Another reason is the US Federal Reserve's announcement to raise interest rates by 0.75%. This led to an increase in government bond yields and a decrease in investor interest in cryptocurrencies, traditionally considered risky assets.


At the end of September, we are expecting events that will very likely change the bearish trend of cryptocurrencies and give hope for growth and revival of the market: the release of Changpeng Zhao, the head of Binance, from custody and the final settlement with FTX investors will give a rebound. 

#Binance #cryptocurrency #Bitcoin #Solana

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