Bitcoin price brought a descending streak since last week, which is about 12%, reaching the close of this note at $21,155; Lowest price in August and strongest weekly decline since July.
Additionally, for the country, it means less than half the average price the country paid, for its 2,381 tokens.
According to an analysis by Moody’s Risk Agency, the state paid an average of $44,539 for every bitcoin it acquired. Although the purchase prices ranged from $58,453 to $19,000, it means, according to the rating agency’s calculations, an expenditure of $106.04 million, which added to the entire ecosystem implies more than $375 million.
The Moody’s report, which shows that losses are calculated, says, “At the bitcoin price of $20,500, there are approximately $57 million in losses,” and Treasury resources committed to various bitcoin expenditures are deducted from government liquidity before the upcoming bond maturities…purchases made Bitcoin is less of a sinking fund and more draining of resources,” he emphasizes.
At the current price, the losses on the accounting books would be around $54 million and would be realized if the crypto assets were sold.
Why go down?
Analysts explain that the downward streak is due to market expectations about the actions of the US Federal Reserve, and if rates continue to be aggressively adjusted, then risk appetite is limited. . , due to economic growth forecasts.
“Weak global stock indices and a deteriorating macroeconomic context are worrisome factors. At the same time, the cryptocurrency market is no longer in oversold territory, but it is not yet attractive to long-term investors,” explains FxPro’s Alex Kopetsekevich, a market analyst.
In addition to Bitcoin, other coins such as Ethereum and binance remained in the red on Monday afternoon.
And it’s not just crypto assets waiting for the Fed’s decisions.
Wall Street closed yesterday with clear losses and the Dow Jones Industrial Average, its main index, fell 1.91%, its worst day since mid-June.
The Nasdaq Market Composite Index, where major technology companies are listed, is down 2.55%.
Wall Street last week broke its good streak, amassing four straight weeks of gains, thus reclaiming some of the ground it lost in the first half of the year.
Stocks in New York rose between mid-July and mid-August on expectations that inflation had peaked and that this would allow the Federal Reserve to choose less aggressive policy.
However, in the recent messages issued by the US central bank, it was clarified that it would be necessary to continue raising interest rates, which calmed the mood of investors, who fear the impact of higher money price. You have economic growth and business results.
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