bitcoin, Price Drop
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Cryptocurrency markets fell as global equities and precious metals sold off, while bitcoin liquidations exacerbated downside moves.
The bitcoin price has plummeted under the closely-watched $80,000 per bitcoin level, sparking fears that a full-blown bitcoin and crypto crash could be looming.
“When interest rates increase, fixed-income assets lose value, and investors, knowing that interest rates are easier to predict and may continue to increase, instead of holding a ‘fixed-income’ asset that will lose value in the short term, they cut losses and invest in riskier assets, like Bitcoin,” he said in a recent analysis.
The main impact of the price decline is slowing Strategy's ability to buy more bitcoin without diluting shareholders, as its stock now trades at a discount to its bitcoin holdings.
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A part of why many freelancers have begun to gravitate toward Bitcoin and other cryptocurrencies is the rising costs of using traditional global payment platforms. Many of them have started introducing fees and restrictions on transactions that noticeably cut into a freelancer’s bottom line.
Last weekend, crypto investors globally saw the market nosedive to all-time lows. Bitcoin plunged to the 70's zone, dropping close to $74,000, about 40% drop from its all time highs. At press time, it was trading at $78,244.45