The price of Bitcoin has been falling since November 2021, prompting talk of a new “cryptowinter.” At the end of 2021, the U.S. Federal Reserve announced that it would cut its economic stimulus program and accelerate bond purchases from the market by half. The plan is to stop the printing press completely in March, after which the interest rate hike will begin. The dollars printed during the crisis will begin to be gradually withdrawn from the system.
This news influenced stock and cryptocurrency markets, because bitcoin remains one of the most popular ways to save capital amid rising inflation. Therefore, the winding down of economic stimulus programs is not good news for bitcoin. And after the flagship of the market, most altcoins fell. But although now the situation is not in favor of cryptocurrencies, in the long term, experts do not see serious reasons to worry. The high demand for cryptocurrency, growth in the number of institutional investors and other factors suggest that this correction is a temporary phenomenon.