The price of bitcoin fell below $26,000 on Monday, August 28, 2023, extending its losing streak to a seventh day. The world’s largest cryptocurrency was trading at $25,917 at 10:00 am IST, down 2.5% in the last 24 hours.
The sell-off in bitcoin has been driven by a number of factors, including the ongoing war in Ukraine, rising inflation, and the Federal Reserve’s plans to raise interest rates.
The war in Ukraine has caused investors to sell risky assets, such as bitcoin, as they seek shelter in safer investments. Rising inflation has also made bitcoin less attractive, as it is a store of value that is not linked to any fiat currency.
The Federal Reserve is also expected to raise interest rates in the coming months, which could make it more expensive to borrow money and invest in risky assets.
The sell-off in bitcoin has wiped out billions of dollars in investor wealth. The total market capitalization of bitcoin has fallen below $500 billion, from a peak of over $3 trillion in November 2021.
Some analysts believe that the sell-off in bitcoin could be a buying opportunity. They argue that the long-term fundamentals of bitcoin remain strong and that the price is likely to rebound in the future.
However, other analysts are more cautious. They argue that the sell-off could continue and that bitcoin could fall even further.
It is too early to say whether the sell-off in bitcoin is over. However, investors should be aware of the risks involved before investing in bitcoin.
Here are some of the key takeaways from the news:
- The price of bitcoin fell below $26,000 on Monday, extending its losing streak to a seventh day.
- The sell-off in bitcoin has been driven by a number of factors, including the ongoing war in Ukraine, rising inflation, and the Federal Reserve’s plans to raise interest rates.
- The sell-off in bitcoin has wiped out billions of dollars in investor wealth.
- Some analysts believe that the sell-off in bitcoin could be a buying opportunity.
- Other analysts are more cautious and believe that the sell-off could continue.
It is important to remember that the cryptocurrency market is volatile and that prices can fluctuate wildly. Investors should always do their own research before investing in any cryptocurrency.