Bitcoin fell sharply and briefly began testing the $ 40,000 problem

Bitcoin continued to decline until last week and this valuable asset continues to be the toughest as the volatility of global markets has changed in recent years.

The largest cryptocurrency in the cap market rose $ 40,000 for the first time since late September, down 42% from the previous three months. Ether, the second largest digital asset, also crashed, while DeFi tokens like Uniswap and Aave struggled for weeks as well.

There are indications that the Fed is preparing to fight further inflation by cutting its stimulus package. The announcement of the Fed's December Fed meeting on Wednesday could indicate that the Fed may raise interest rates faster and faster than expected and lower its balance sheet. These measures will lead to lower income in the market, which may affect the growth growth (6.77, 0.09, 1.27%) and the beauty of the asset.

“If the Fed tightens, risky assets, including cryptocurrencies, will turn out bad,” Miller Tabak said. says Matt Maley, chief market strategist.

Bloomberg Intelligence's Mike McGlone says $ 40,000 is a significant level of support for Bitcoin. Cryptocurrency is a good indicator that appetite risk is now on the decline. However, he is hopeful that Bitcoin eventually wins when the world goes digital and Bitcoin becomes a commodity.

The ubiquitous 19 has helped Bitcoin further integrate into the mainstream, as businesses and investors have become involved in the cryptocurrency industry and other businesses. Now, as the Fed has turned hawkish, risky assets like commodities and digital assets are hit. The Bloomberg Galaxy Cryptocurrency Index, which tracks some of the biggest cryptocurrencies, fell 10% between the start of the year and Friday.

Blockforce Capital CEO Eric Ervin said the decline in real estate could be the start of "small businesses." Entrepreneurs can leave in the future and long term holders will be the key holders.