Bloomberg said it was a response to growing fears of a recession in financial markets. US stocks also weakened significantly, for example, the Nasdaq technology market index fell by five percent on Thursday.
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Bitcoin was still trading at 927,170 crowns on Thursday, but on Friday the exchange rate fell to 831,640 CZK. The most famous cryptocurrency last had such a weak exchange rate at the end of February. On the contrary, at the end of March, one virtual coin was traded for CZK 1,056,560.
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Development of bitcoin value over the last week
Other cryptocurrencies are not much better off, many of them even lost even more. The double-digit decline in the exchange rate is evident, for example, in the Kyber Network, Waves, Axie Infinity, Curve DAO Tokeen, Kava.io and JasmyCoin virtual coins.
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Ethereum, as the second most famous cryptocurrency, dropped from CZK 68,250 on Thursday to CZK 62,740. At the end of March, the etherea exchange rate was CZK 77,960.
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Cryptocurrencies began to lose after the US Federal Reserve raised the key interest rate by half a percentage point to between 0.75 percent and one percent. This is the highest increase in interest in 22 years, according to many economists, a harbinger of the coming recession.
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The US now has the highest inflation in 40 years. If the Fed’s intervention this week does not curb inflation, the bank will have to resort to more draconian measures.
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