Pessimism dominates cryptocurrencies as Bitcoin drops below $17,000

The bitcoin it traded below $17,000 again and several smaller cryptocurrencies denominated in altcoins saw significant declines as concerns mounted that the cryptocurrency market’s woes are far from over.

Bitcoin fell 1.81% to $16,709 as of 12:48 GMT today, Saturday.

Early last week, Bitcoin hit its highest price since Sam Bankman’s cryptocurrency firm Fred filed for bankruptcy protection last month, according to a report released by Bloomberg and seen by Al Arabiya.

Process “Ethereum” fell 2.72% to $1180, while other currencies such as “Avalanche” and “Solana” also declined.

Cryptocurrencies fell along with US stocks as the economy suffered amid tightening by the US Federal Reserve.

The decline erased a short-lived rally that had pared some of the cryptocurrency’s losses for the month of November. Since the start of the year in course, Bitcoin is down nearly 65%.

Will Tamblin, chief analyst at Verlaid Strategies, said that Bitcoin is likely to again approach the lows it recorded last November, as the currency has now fallen to its lowest price since November 2020.

Noelle Atchison, author of a newsletter titled “Crypto as Macro Now,” said investors are still worried about the fate of other cryptocurrency-related companies, including Binance Holdings.

The token Binance cryptocurrency BNB fell 6.3% on Friday, losing about 50% last year.

“There may be some bad contagion news that hasn’t gone away yet, but most of the investors who would have sold have done so,” Atchison added.

Shares of cryptocurrency-related companies continue to come under pressure, with Coinbase Global dropping 9% to $34.71, another all-time low.

Read More About: Business News