Bitcoin loses the $35,000 mark

Recorded at about 10 am (Vietnam time), the Bitcoin price on CoinDesk exchange traded at 33,522 USD. As such, the Bitcoin price has dropped by nearly $1,000 in just the past 24 hours. Compared to the peak of $67,802 reached in November 2021, Bitcoin has lost more than 50% of its value.

The sharp decline of Bitcoin in particular as well as the cryptocurrency market in general coincided with a sell-off in the world stock market, especially in the US. Last Thursday, US stocks recorded their worst day since 2020 when the Dow Jones index lost more than 1,000 points while the Nasdaq lost 5% of its value.

The US Federal Reserve (FED) on May 4 announced to raise interest rates by 0.5% to cope with the worst inflation in 40 years. This is the first time the Fed has raised interest rates at this level. The reference interest rate in the US is currently in the range of 0.75% – 1%.

Bitcoin lost more than 50% from the peak reached in November 2021

According to Bloomberg, the crypto market is being weighed down by tight monetary policies by central banks to tackle inflation.

“If risk sentiment continues to decline, technical signs suggest Bitcoin could hit 28,000 USD and 20,000 USD next,” noted Jeffrey Halley, senior market analyst at Oanda Asia Pacific.

Edul Patel, CEO and co-founder of crypto investment platform Mudrex, says Bitcoin is breaking support and is likely to continue to decline. Bitcoin’s current support level is 32,000 USD.

A few days ago, at the shareholders meeting of Berkshire Hathaway, the legendary investor Warren Buffett continued to have negative statements about Bitcoin.

“It (Bitcoin) will go up or down in the next 5 or 10 years, I don’t know. But one thing I’m pretty sure it doesn’t produce anything,” Warren Buffett said.

Warren Buffett says he’s willing to pay $25 billion for 1% of farmland or 1% of apartment buildings in the US. However, if someone owned all the Bitcoins in the world and offered him $25, he wouldn’t accept it either.

“I don’t know what to do with them and will have to sell them one way or another. They won’t make anything. While apartments can be rented, land can become farms. produce food,” emphasized Warren Buffett.

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