The cryptocurrency market is seeing a new phase of turbulence that is reflected in the Bitcoin price drop.
Since Friday, several cryptocurrencies weakened in the face of the uncertainty generated by the Federal Reserve meeting and the information that may emerge there.
The price of Bitcoin fell more than 2% to below $39,000 and its volatility led it to be at $43,000 and then fall to $38,000 in the same week.
Shiba Inu also lost 5.12% of its value, while Dogecoin also fell 2.64%.
On the other hand, Ethereum strengthened with a discreet 0.22% increase in its unit value.
It is striking that practically all the tokens of the top 100 cryptocurrencies experienced sales towards the end of last week and this generates uncertainty among investors, which translates into loss of value.
A key point that incentivizes the volatility of cryptocurrencies are the statements issued against them, as is the case of Warren Buffett, chairman of Berkshire Hathaway, who recently questions that investing in them is not a suitable option.
“If you told me you owned all the Bitcoin in the world and offered it to me for $25, I wouldn’t take it. What would I do with it?” he recently commented.
On the other hand, inflation levels point to the Federal Reserve raising interest rates well above current levels before the end of the year and this creates a difficult scenario for speculative investments such as cryptocurrencies, so no one dares to forecast what will happen to them.
So far, various experts point out that, by providing a blockchain network on which applications and services can be built, Ethereum’s Ether token could withstand financial turbulences more than other cryptocurrencies.