Digital currencies have suffered heavy losses in recent days, with bitcoins reaching their lowest level in a year and a half below $ 24,000, raising concerns about the future as global markets continue to be in turmoil. Is.
The digital currency market fell to $ 926 billion, while Bitcoin fell about 10 percent to its lowest level in 18 months at $ 23,950, according to CoinMarketCap.
Bitcoin price decline represents a 65% decrease compared to the highest level recorded by Bitcoin in November last year.
Observers and economists believe that the decline in the price of Bitcoin is due to the desire of some investors to get rid of these currencies amid widespread sales of high-risk assets.
The market value of digital currencies fell below $ 1 trillion for the first time since early 2021.
For his part, Tariq al-Rifa’i, an economic analyst and CEO of the Quorum Research Center in London, believes that digital currencies are fundamentally and strongly related to the performance of the Nasdaq technology index, which means that in parallel with the sharp decline in recent days. , Cryptocurrencies are also falling.
Al-Rifa’i blamed central bank delays on rising interest rates and rising inflation, raising concerns about the future of the global economy.
“Digital currencies are taking time to recover after the Great Depression, which is similar to the nearly 80 percent decline in bitcoin in 2017 and did not reach more than $ 19,000 in just three years,” he said. We will be in a similar period, and so the currencies will not return.
“Given the Russia-Ukraine war, which is linked to the Russia-Ukraine war,” Rashad Abdu, an economist and chairman of the Egyptian Association for Political and Strategic Studies, told Sky News Arabic. “The so-called stage of uncertainty, investor anxiety and fear of developing the battle or its continuation.” In that, and therefore in this period, people tend to save and not invest, which reduces the demand for those currencies. Declaration of some countries such as China not to deal with them.
The Chinese government continues to ban financial institutions and payment companies from providing digital currency services.
“The price of digital currencies is expected to fall again, but it will not decrease much and it will rise again as the political and economic conditions stabilize,” Abdo said.
He explained that trading in digital currencies, despite modern technology, would be fraught with risks such as the nature of the economy and the global stock market.
The MVIS 100, which measures the top 100 digital currencies, fell 9.7 percent as other digital currencies continued to decline.
Meanwhile, the Celsius network, the main lender of the US cryptocurrencies, has stopped withdrawals and transfers due to difficult conditions, and this shows that the turmoil in the financial market has caused unrest in the crypto world.
Despite the turmoil, the CEO of the Corum Study Center believes that the future of digital currencies is very promising, as it is needed in many transactions that save more time and efficiency than regular operations, as well as in remittances and commercial exchanges.
“But we have a problem with speculating on digital currencies, and the world is on the way to ending this,” he said.
Source: Lebanon Debate
