Bitcoin’s fall is largely influenced by the increase in the key rate of the U.S. Federal Reserve. So the change in the price of the cryptocurrency was explained by a financial expert. He also spoke about the prospects of investing in bitcoin.

“For several months now, the U.S. Federal Reserve has been gradually raising its key rate. This will lead to the fact that traditional financial instruments, denominated in dollars, become more profitable. Therefore, some investors who used to go into cryptocurrencies because of the low yield of traditional instruments are now starting to return to this market,” said the expert.

As long as the Fed continues its policy of rising rates, the price of bitcoin will continue to fall

Bitcoin has the potential for rebound and growth. But you have to keep in mind that the cryptocurrency market is very high-risk, which is different from any other market, The expert warned.

If you can be sure about the changes in the value of securities and gold, you can be less sure about this. You can invest, but understand that the risk is high.

“This is a very unstable segment of the financial market by a combination of factors. Cryptocurrency has no rules at all except that you can sell what you bought for more than the initial price. That’s it. You can’t evaluate in terms of piecemeal actions, like currencies or securities. Such leaps will be repeated,” concluded the expert.

On Aug. 19, bitcoin plummeted nine percent overnight, the worst result in two months. Its value fell to $21.4 thousand.

https://altcoin.ng/why-is-the-price-of-bitcoin-falling/

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