Bitcoin rate fell to $ 10.3 thousand due to the decline in DeFi and the stock market

Over the past day, the price of bitcoin has decreased by9.28%, reaching $ 10.3 thousand. Analysts associate such rapid changes with a decline in speculative excitement in the field of decentralized finance, a weakening of the stock market and increased pressure from sellers.

During the night collapse, the MTC rate dropped tothe minimum level over the past seven weeks, and for some time traded below $ 10 thousand. Analysts name several factors at once that influenced the price of the first cryptocurrency.

Over the past few months the market"warmed up" rapid growth of projectsDeFi due to active income farming by investors. However, the influx of users overloaded the Ethereum network, which caused a significant increase in transaction fees, making only large transactions profitable. As a result, the speculative excitement in the market began to gradually subside, as traders realized the high risks due to excessive token inflation and began to act more carefully.

Aggressive competition between decentralizedexchanges increased their trading volumes to billions of dollars. As a result of the growth of the DeFi sector, it began to have a direct impact on sentiment on centralized sites.

In addition, since the beginning of the year, analysts have notedBitcoin's increasing correlation with traditional markets, in particular the S&P 500 index, which fell 4% on Thursday. Falling stock prices of Facebook, Amazon, Apple, Netflix, Alphabet and major US retail chains could also have fueled a short-term sell-off in digital currencies.

Analysts also noted that on the eve of the collapse of the MTC exchange rate, large mining pools began to increase the amount of funds in the wallets of exchanges for sale, increasing pressure on the market.

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