The recent fall of Bitcoin (BTC) has generated a lot of discussion in the financial market. Bitcoin, which already reached high prices in 2023, experienced a significant fall in 2024, which can be attributed to a number of factors:
1. Monetary Policy: The decision of central banks, such as the Federal Reserve in the US, to increase interest rates has negatively impacted cryptocurrency markets. Rising interest rates tend to make riskier assets, such as Bitcoin, less attractive to investors seeking safety.
2. Regulations: The regulatory landscape for cryptocurrencies has become stricter in several countries. Uncertainty about how governments will treat crypto in the future may drive away investors, especially institutional ones.
3. Market Sentiment: The cryptocurrency market is highly volatile and greatly influenced by investor sentiment. In times of pessimism, such as the current one, many sell their assets in an attempt to minimize losses, which ends up aggravating the fall.
4. Technical and macroeconomic challenges: In addition to local issues, the global macroeconomic situation, such as inflation and slowing economic growth, has also put pressure on the financial markets in general, affecting Bitcoin and other cryptocurrencies.
These factors, combined with the volatile nature of Bitcoin, have caused the value of the cryptocurrency to fluctuate dramatically, resulting in losses for many investors in the short term.
