Crypto market in decline: Bitcoin and Ethereum are losing value

Crypto market in decline: Bitcoin and Ethereum are losing value

The crypto market, including Bitcoin and Ethereum, is currently recording losses. Bitcoin is down 2.20 percent in the last 24 hours and is trading below $63,000. Experts attribute this development to possible stagflation in the US economy. Compared to the last quarter of 2023, the US economy is growing by only 1.60 percent, which is below expectations. These numbers could be responsible for the bearish trend in the crypto market.

The value of Bitcoin is currently at $62,380, down 2.20 percent on the daily and 5.75 percent on the weekly trend. Ethereum recorded a decline of 4.30 percent since yesterday, but the weekly trend loss is only 1.40 percent. At press time, Ethereum is valued at $3,170. The entire crypto market has seen a decline of about three percent in the last 24 hours, reaching a total value of $2.31 trillion.

The recent losses could be due to a pessimistic outlook for the future, with the US economy growing slower than expected, according to the latest data. The Bureau of Economic Analysis says real GDP rose just 1.6 percent in the first quarter of 2024, which could be due to falling consumer spending, lack of investment and trade deficits. Given these numbers, some experts fear possible stagflation in the economy.

The US Federal Reserve's high interest rate could also slow down financial involvement in the crypto market. Nevertheless, they plan to lower the key interest rate in the coming months. During times of low interest rates, this often leads to increased interest in crypto investments and speculation. The ongoing situation in the US economy as well as global events could continue to influence the price development of cryptocurrencies such as Bitcoin and Ethereum.