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Bitcoin hit a new low of $20,800

Bitcoin hit a new low of $20,800

U.S. inflation, investor anxiety, lack of trust in stablecoins, and other factors negatively impact the digital asset market.

Bitcoin fell to its lowest level since December 2020 at $20,800 on the morning of June 14. As of June 14, the asset was trading at $22,000, having depreciated 7% in the past 24 hours and 36% in the past week.

The decline in the digital asset market speeded up on June 13 when Celsius, an international cryptocurrency lending company, announced it was banning customer withdrawals, claiming "extreme market conditions." The company's CEL token then dropped in value by 50%.

The main factor behind the crypto market collapse is the same as those associated with the stock market fall, namely, the accelerated inflation in the U.S. to a 40-year high, the May figures of which were made public last Friday, says the co-founder of ENCRY Foundation Roman Nekrasov.

According to the expert, both the crypto and stock markets immediately fell in response to the released data. The expert explained that the high inflation rate indicates a further policy of the U.S. Federal Reserve to increase the key rate.

At the same time, higher rates mean higher yields on instruments such as treasury bonds, prompting many investors to reconsider the share of high-risk assets in their portfolios.

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