Big losses for bitcoin

 Bitcoin prices fell, as investors flee riskier assets, while the Federal Reserve considers whether to launch a US digital currency.

Bitcoin prices fell from the highest level it was last November at the level of 70,000 dollars, to reach 35,000 dollars, according to a report published by the Washington Post.

This cryptocurrency has recorded a 23 percent decrease since the beginning of the year, while the “Ethereum” currency has declined by 35 percent since the beginning of 2022.

The report notes that the market has witnessed a massive sell-off in the bitcoin and other cryptocurrency market in the last two months, which has led to the cryptocurrency market losing $1.4 trillion in value.

On Saturday, the total value of the cryptocurrency market reached $1.6 trillion, after it had reached about $3 trillion last November, according to CoinMarketCap indicators.

Traders in the cryptocurrency market are pushing to use it as a “safe haven” or “payment” alternative, but many people buy and sell cryptocurrencies in order to “speculate” and make a quick profit.

According to the report, the “recent crash in the cryptocurrency market” illustrates the risks that individuals who pursue the “digital gold fever” can be exposed to.

Bitcoin's proponents argue that its value lies in "limited supply" as the number of its units is limited to just 21 million units, which means it should be a "safe" place in times of high inflation, but prices are rising around the world at the fastest rate in 40 years. The Federal Reserve is preparing to raise interest rates.

On Wall Street, the indices were not better off, as heavy selling was announced, which caused the Standard & Poor's 500 index to decline by 5 percent, the Dow Jones Industrial Average to fall by 3.9 percent, and the Nasdaq index to decline by 6 percent.

Bob Fitzsimmons of Wedbush Fund said, “We thought that with the inflation we were seeing, we would see indicators to the contrary,” adding that he was “surprised by the correlation of the Bitcoin selloff and its correlation with stock prices.”