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Bitcoin fell below 60 thousand dollars
The price of the cryptocurrency Bitcoin fell below 60 thousand dollars after Changpeng Zhao, who resigned as Binance’s chief executive (CEO) before the interest rate decision of the US Federal Reserve (Fed), was sentenced to 4 months in prison.
According to data from analysis company 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, dropped to $59,120 in the last 24 hours after Changpeng Zhao, who resigned as the top manager of Binance before the Fed’s interest rate decision, was sentenced to 4 months in prison.
The weekly value loss of Bitcoin, which was traded at 59 thousand 750 dollars as of 23.38 (UTC), approached 10 percent.
The decline in the price of Bitcoin, which recorded its all-time high at $73,750 on March 14, exceeded 18 percent in 46 days.
The price of Ethereum, which ranks 2nd in terms of market value, dropped below 3 thousand dollars. As of 23.38 GMT, Ethereum was traded at 2 thousand 954 dollars.
Analysts stated that a negative trend was observed in the crypto market after data signaling that inflationary pressures continue in the USA.
Analysts also stated that the stronger-than-expected employment cost in the USA points to permanent inflationary pressures and expressed that crypto investors are cautious before the interest rate decision to be announced by the Fed tomorrow.
In addition, analysts emphasized that the unexpectedly strong increase in house prices indicates that the recovery in the US real estate market is on the way, and reminded that the possibility of the Fed to start reducing interest rates was postponed until the last quarter, following the data that signaled that the fight against inflation in the US may last longer than expected.
Zhao’s 4-month sentence was also effective
The 4-month prison sentence of Changpeng Zhao, who resigned as the chief executive (CEO) of the cryptocurrency exchange Binance in accordance with the agreement he made with the US government in November 2023, also had an impact on the sharp sales in the crypto world.
In the criminal case heard in Seattle Federal Court, prosecutors asked for a 3-year prison sentence for Zhao as a deterrent, while defense lawyers requested 5 months of supervised release.
Zhao’s lawyers argued that the former CEO admitted his mistake, came to the US voluntarily, had not violated any laws before and was cooperating.
Zhao, once considered the “most powerful person in the crypto industry” and known as “CZ”, was sentenced to 4 months in prison for “failing to provide adequate protection against money laundering”.