Inflation data above the target on Friday “killed the risk appetite for stocks and this dragged down cryptocurrency,” said Edward Moya, a senior market analyst in America, for OANDA, a runner.
According to Moya, the change in sentiment in the context of tougher financial conditions has reduced the prospect of a strong rebound in bitcoin, as has been the case in previous periods of weekend sales.
“Cryptographic errors over the weekend were sometimes followed by a quick recovery, but the current environment and soft interest can make the recovery slow.”
The intensification of the selling pressure facing cryptocurrencies caused Celsius, a four-year-old cryptocurrency company, to halt the exchange of its cryptocurrency accounts.
The company offers services that include the so-called Swap tool, which allows users to transfer cryptocurrencies for stable currencies, which are linked to fiat currencies, such as the US dollar.
He said the measure reflected his need to “stabilize liquidity and operations while we take steps to preserve and protect assets,” and that he will try to resume business as soon as possible.
“There is a lot of work ahead, as we consider several options. This process will take time and there may be delays, “he said in a blog post.
Celsius ‘decision comes weeks after Terra, a popular stable currency pegged to the US dollar, collapsed alongside its brother Luna, removing tens of billions of dollars in market value from investors’ portfolios.
The persistent fall in the value of cryptocurrencies this year has turned the old bulls into bearers and led to a rethinking of the usefulness of the digital currencies of veteran traders who had previously supported them.
Two weeks ago, Scott Minerd, investment director at Guggenheim Partners, a Los Angeles-based fund manager, said he predicted that the price of bitcoin could drop to $ 8,000 when investors began questioning its role in the wallets.
Minerd said he added bitcoins to his wallet when it hit $ 20,000 in value and sold it when it reached $ 40,000. As the price rose to its peak just above $ 60,000, he predicted it would be halved, but revised his outlook to predict a drop as low as $ 8,000.
“I was one of the first believers in cryptography,” Minerd said in an interview with Bloomberg at the World Economic Forum in Davos last month. “I really thought this was a viable investment vehicle. But one of my big concerns is that no one has broken the paradigm in cryptography,” he said.
“The definition of a currency is that it is a means of exchange, a reserve of value, a unitary account,” he said. “We’ve learned that none of these things: stable currencies, the whole piece,” he says of a coin, and that “everything is suspicious.”