Bitcoin, the leading cryptocurrency, rose to $31,000 on April 14, with its rally since the beginning of 2023.
However, although this rally has lost momentum since mid-April, it has shown signs of recovery in recent days.
While investors are waiting for BTC to rise again, BTC, which closed four consecutive months in green from January to May, is preparing to close May with a red candle.
At this point, Bitcoin experienced a sharp decline tonight as it prepares for its monthly close today.
The two largest cryptocurrencies Bitcoin and Ethereum (ETH) fell by about 2%, while altcoins also saw significant drops.
While the reason for this decline is not clearly known, analysts said that investors liquidated their assets as a result of BTC closing a month lower for the first time in 2023, that is, closing it with a red candle, and these liquidations caused a sharp decline.
Analysts also stated that the hawkish statements of Cleveland FED Chairman Loretta Mester, who commented on the Fed's interest rate strategy yesterday, also caused the dollar to strengthen and the BTC, which is in inverse correlation with the dollar, to fall.
Speaking to the Financial Times in this context, Mester said that there is no compelling situation for the FED to stop monetary tightening, and these statements caused risk assets, including cryptocurrencies, to fall.
The Cleveland Fed chairman told the FT:
"Actually, I don't see any compelling reason for the Fed to pause its policy.
I think it is necessary to raise interest rates and then proceed in the same way until we are more confident about where the economy is going.
At this point, I really don't see a compelling reason for the Fed to pause rate hikes."
Bitcoin fell to $ 26,900 with its sharp decline, while the largest altcoin ETH fell to $ 1,850. At the time of writing, BTC continues to trade at $ 27,136 and ETH at $ 1,869.
*Not investment advice.
