Bitcoin fell to its lowest level in a three-week period, by 1.9% to $16,227, its worst figure since Nov. 29 this year. The depreciation of the cryptocurrency comes against the backdrop of the S&P 500 index falling for the fourth consecutive session due to a possible interest rate hike by the US Federal Reserve.
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According to the founder of Fairlead Strategies, Katie Stockton, bitcoin is expected to fall to its November lows at $15,600. Furthermore, over the longer term, the cryptocurrency is expected to fall to $13,900.
After cryptocurrencies hit record rates in 2021, tough times are coming next year, largely due to the tightening of policy by the United States and other regulators regarding the corresponding market, as well as the collapse of the ecosystem Terra / Luna, the Tre Frecce Capital hedge fund and the cryptocurrency exchange FTX. In addition, in recent years, cryptocurrency rates have significantly correlated with the state of the US stock market, which is experiencing difficult times, which has become one of the reasons for the current decline in bitcoin and other assets.
According to Bitfinex experts, cryptocurrency traders should monitor the market even during holidays. Many companies and solo traders take a breather during this period and a decrease in trading activity can increase the risk of volatility.
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