Bitcoin and Ether continue to decline – the price of cryptoassets fell by 10% per day amid rumors of a reduction in economic stimulus from the US Federal Reserve and the continuing pressure from China on miners.
On the morning of June 8, the price of bitcoin dropped to $ 32,700, showing a 10% drop per day from about $ 35,500. The reason for the fall was the way traders assess the prospects for a change in US monetary policy and further tightening of cryptocurrency regulation in China.
Source: Tradingview
The decline was the largest for the bulls after falling 6.2% at the end of May amid selling pressure from the weakening of bullish investor sentiment. Last Saturday, the bitcoin rate began to decline rapidly. The reason was the blocking of more than two dozen popular cryptocurrency accounts on the Chinese social network Weibo. Apparently, the latest drop is due in part to regulatory pressure from the Chinese government.
Equity markets are also showing a mild negative as investors expect the US Federal Reserve to begin abandoning its quantitative easing program aimed at boosting liquidity. Deutsche Bank said the US could experience one of the worst inflationary periods in history, in which government spending and loose monetary policy could act as catalysts for creating conditions last seen in the 1940s and 1970s.
Ether also fell by 10% per day and on the morning of June 8 traded at $ 2,495, down from $ 2,600. According to CoinMarketCap, all top 10 cryptocurrencies by market capitalization lost 10-14% per day. DOT and DOGE suffered the most – their value decreased by 14.7% and 13.3%, respectively.
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