Bitcoin rate fell to $ 10.3 thousand due to the decline in DeFi and the stock market
Over the past day, the price of bitcoin has decreased by 9.28%, reaching $ 10.3 thousand. Analysts associate such rapid changes with a decline in speculative excitement in the field of decentralized finance, a weakening of the stock market and increased pressure from sellers.
During the night collapse, the BTC rate dropped to its lowest level in the last seven weeks, and for some time traded below $ 10 thousand. Analysts name several factors at once that influenced the price of the first cryptocurrency.
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Over the past several months, the market has fueled the explosive growth of DeFi projects due to the active pharming of income by investors. However, the influx of users has led to an overload of the Ethereum network, which has caused significant increases in transaction fees, making only large transactions profitable. As a result, speculative excitement in the market began to gradually subside as traders realized the high risks due to excessive token inflation and began to act more carefully.
Aggressive competition between decentralized exchanges has increased their trading volumes to billions of dollars. As a result of the growth of the DeFi sector, it began to have a direct impact on sentiment on centralized sites.
In addition, since the beginning of the year, analysts have noted an increase in the correlation of bitcoin with traditional markets, in particular the S&P 500 index, which fell 4% on Thursday. Falling stock prices in Facebook, Amazon, Apple, Netflix, Alphabet and major US retailers could also stimulate a short-term sell-off in digital currency.
Analysts also noted that on the eve of the collapse of the MTC exchange rate, large mining pools began to increase the amount of funds in the wallets of exchanges for sale, increasing pressure on the market.