Bitcoin (BTC) is now on its longest losing streak since 2018 with the price of the biggest cryptocurrency falling close to $40,000 U.S.
Bitcoin is currently hovering at $41,500 U.S. and has fallen for seven consecutive days, its longest losing streak since the period from July 30 to August 4, 2018.
The price hasn’t fallen below $40,000 U.S. since September 2021, and it’s now 35% off its all-time high near $69,000 U.S. reached last November.
Launched in 2009, Bitcoin celebrated its 13-year anniversary last week, but there hasn’t been much of a party for the plunging digital asset.
Cryptocurrency market analysts had warned recently that Bitcoin might be prone to a steeper selloff than other digital coins and tokens, though there were some signs late last week that the market might be stabilizing.
January tends to be a seasonally weak month for Bitcoin, but this year has been especially harsh, with the largest cryptocurrency down 11% after one week of trading.
The market was roiled last week by the release of Federal Reserve minutes signaling that officials at the U.S. central bank are discussing whether to take more aggressive steps to tackle an inflation rate that’s now at its highest level in almost four decades.
Many analysts say Bitcoin has benefited in recent years from the Fed’s ultra-loose, emergency monetary policy since the pandemic hit the global economy – including printing more than $4 trillion U.S. to bolster ailing traditional markets.
A reversal of central bank policies is seen as a fresh headwind for Bitcoin.
