On Monday, Bitcoin fell to a low of $31,700 on the Bitstamp platform, as markets absorbed an ominous inflation warning from the US Federal Reserve, as well as a tightening of Chinese regulations.
Since reaching an all-time high of $64,895 on April 14, the world's most valuable cryptocurrency has lost more than half of its value.
Bitcoin briefly went above the $40,000 barrier earlier this month, a psychologically crucial figure for many traders, raising hopes for a comeback. However, on June 15, the downtrend resumed with a strong rejection from the daily chart's 200-day exponential moving average.
A day later, the US Federal Reserve issued a warning that inflation is likely to be higher than the central bank had predicted, boosting the prospect of an interest rate rise to temper demand.
The Fed's announcement sent global stock markets tumbling, unleashing a wide sell-off that expanded to supposed inflation hedges like bitcoin and gold (down 6 percent last week).
Since reaching an all-time high of $64,895 on April 14, the world's most valuable cryptocurrency has lost more than half of its value.
Bitcoin briefly went above the $40,000 barrier earlier this month, a psychologically crucial figure for many traders, raising hopes for a comeback. However, on June 15, the downtrend resumed with a strong rejection from the daily chart's 200-day exponential moving average.
A day later, the US Federal Reserve issued a warning that inflation is likely to be higher than the central bank had predicted, boosting the prospect of an interest rate rise to temper demand.
The Fed's announcement sent global stock markets tumbling, unleashing a wide sell-off that expanded to supposed inflation hedges like bitcoin and gold (down 6 percent last week).
