Sharp drop in Bitcoin

According to data from the analysis firm Coinmarketcap, the value of the global cryptocurrency market, including Bitcoin, decreased by approximately 5.2 percent in 24 hours, falling to 2 trillion 210 billion dollars.

The price of Bitcoin, the largest cryptocurrency, fell to 59 thousand 120 dollars in the last 24 hours following the 4-month prison sentence handed down to Changpeng Zhao, who resigned as CEO of Binance, ahead of the Fed's interest rate decision.

As of 23:38 TSI, Bitcoin was trading at 59 thousand 750 dollars, with its weekly loss approaching 10 percent.

Bitcoin, which recorded its all-time high of 73 thousand 750 dollars on March 14, has seen its price drop by more than 18 percent in 46 days.

The price of Ethereum, which ranks 2nd in terms of market value, also fell below 3 thousand dollars. As of 23:38 TSI, Ethereum was trading at the 2 thousand 954 dollar level.

Analysts stated that a negative trend has been observed in the crypto market following data signaling that inflationary pressures persist in the US.

Stating that the stronger-than-expected employment cost in the US also points to persistent inflationary pressures, analysts expressed that crypto investors are cautious ahead of the interest rate decision the Fed will announce tomorrow.

In addition, analysts emphasized that the unexpectedly strong rise in housing prices indicates that a recovery in the US real estate market is on the way, and reminded that the probability of the Fed starting interest rate cuts has been pushed toward the last quarter following data signaling that the fight against inflation in the US may take longer than expected.

The 4-month prison sentence handed down to Changpeng Zhao, who resigned as CEO of the cryptocurrency exchange Binance in November 2023 as part of an agreement with the US government, also had an impact on the sharp sell-offs in the crypto world.

In the criminal case heard at the Seattle Federal Court, prosecutors requested a 3-year prison sentence for Zhao as a deterrent, while defense attorneys requested 5 months of probation.

Zhao's lawyers argued that the former CEO accepted his mistake, came to the US voluntarily, had not violated laws before, and cooperated.

Once considered the "most powerful person in the crypto sector" and known as "CZ," Zhao received a 4-month prison sentence on the grounds that he "failed to provide adequate protection against money laundering."

News Source: AA