The fall of the markets last week, due to fears that the new increases in interest rates will not be enough to keep inflation at bay, dragged the price of Bitcoin this Monday, May 9, to its minimum value so far.
Bitcoin is trading at $33,000 at the time of writing this article, and the market shows no signs of recovering. This latest decline means BTC is down by 28.8% in 2022 and has recorded a downward trend for six weeks.
The consequence is that Bitcoin has hit a milestone not seen since September 2014. As can be seen in the graph below, Bitcoin registered a new yearly low on Monday, while the Nasdaq and S&P 500 indices also show maximum falls so far this year.
S&P 500 shows a decline of 15.32% since January 1, while the technology shares grouped in the Nasdaq index fell 24.52%. This is despite the fact that the US Federal Reserve revealed last Wednesday that it would maintain limits on interest rates.
There had been fears that the US Fed would increase interest rates by 0.75%, up from 0.5% in March. Interest rate increase makes taking credit more expensive and is used to curb inflation. It remains to be seen if Bitcoin will be able to rebound and hit the $40k mark in the coming days.