Khaberni - Bitcoin is about to fall below the $70,000 level on Thursday, as there are no signs of stopping the decline of the world's largest digital currency.
Bitcoin fell more than 3% in Asian trading to $70,052.38, its lowest level since November 2024.
The price of Ether, the world's second largest digital currency, also dropped nearly 2% to $2086.11, and falling below the $2000 level would be the first since May of last year.
The latest decline in digital currencies was swift and strong, which analysts say was due to the nomination of Kevin Warsh for the upcoming chairman of the Federal Reserve (the US central bank), because of expectations that he would pursue a policy of monetary tightening.
Bitcoin has already fallen more than seven percent during the week, bringing its losses since the beginning of this year to nearly 20%, while the Ether currency has dropped nearly 30% this year to date.
Manuel Villegas Franceschi of the Julius Baer Bank's Next Generation Research Team said, "The market fears that (Warsh) will adopt a hawkish approach. Reducing the balance sheet will not provide any support factors for cryptocurrencies".
Digital currencies are widely regarded as beneficiaries of a large balance sheet, as they tend to rise when the US central bank injects liquidity into the financial markets, which boosts speculative assets.
