Bitcoin continues its fall, which appears increasingly irreversible. On the eve of the announcements of a probable new tightening of the rates of the American Federal Reserve (Fed), the star cryptocurrency sinks below 25,000 dollars on Monday (24,471 dollars), down more than 11% for 24 hours. Bitcoin thus regains a level it had not seen since December 2020, a period during which traditional finance was precisely known by the returns on the asset, in the midst of the Covid crisis.
But already, in May, the asset traded on the blockchain has lost more than 20% and compared to 2021, when it took full advantage of stimulus policies, bitcoin has fallen by almost 40%. The hypothesis of a systemic crisis, with repeated contagions with all the financial markets is reinforced a little more.
In question, the wind of panic on the stock exchanges which expect a monetary policy much less conciliatory. Indeed, the American central bank, whose former boss Janet Yellen, now Secretary of State for the Treasury, admitted that she “was wrong” a year ago to minimize inflation, is forced to turn off the fire.
In the United States, theconsumer price inflation accelerated again in May and is now at its highest since December 1981.
Lending it penalizes donations
This severe closure of the financing floodgates is spreading panic on risky assets and tech stocks. A category in which bitcoin is now created – which nevertheless promised its decorrelation from the markets – but in which a number of institutional funds have invested since 2020.
Among the consequences of this widespread cryptocurrency collapse, donations for Ukraine, activated through these channels, occurred. On March 19, the “Aid for Ukraine” fund of the Ukrainian government a declared having raised over $60 million in cryptocurrencies. But two months later, on May 19, the total was worth $51.5 million, Alex Bornyakov, Ukrainian Deputy Minister of Digital Transformation, told the Davos Economic Forum.
Also, the Celsius Network cryptocurrency lending platform announced the freezing of withdrawals due to “extreme market conditions”.
The procurement of these assets is all the more scrutinized as one in ten European households has already purchased a cryptocurrency, according to a study by the European Central Bank (ECB) published at the end of May.
At the same time, the European stock markets accentuated their losses on Monday, yielding more than 2%, in the face of fears of the severely reduced monetarily. The Paris stock exchange fell by 2.38%, Frankfurt by 2.05%, Milan by 2.14% and the European benchmark index Eurostoxx 50 by 2.40%. London also lost 1.55%.