Bitcoin and other cryptocurrencies are in free fall after the interest rate rises

Bitcoin fell below $35,000 per coin on Sunday, as the global crypto market fell by more than 4.5 percent in the previous 24 hours to $1.66 trillion.

As central banks attempt to curb inflation by boosting interest rates throughout the world, all cryptocurrencies drag down.

Since the beginning of the year, Bitcoin has lost more than 20% of its value.

Bitcoin was hanging at $34,400 on Sunday, while Ethereum, the second-largest cryptocurrency, fell 4.8 percent to $2,545.

Shiba Inu prices were down over 4.9 percent to $0.00001887, while Dogecoin prices were approximately 1.2 percent at $0.12.

The Federal Open Market Committee (FOMC) of the United States raised interest rates by 0.5 percent last week, the largest increase in over two decades.

To battle inflation, Federal Reserve Chair Jerome Powell hiked interest rates.

Bitcoin’s price has dropped by nearly 40% since the Federal Reserve announced intentions to begin raising interest rates in November last year, according to Cointelegraph.

Bitcoin lost 17% in April, making it the worst monthly performance.

According to a recent estimate, bitcoin investors are plan to lose up to $545 million this year due to various factors such as forgetting wallet passwords or making a mistake while entering their “seed phrases.”

A seed phrase is a string of words created by the bitcoin wallet that grants you access to the cryptocurrency connected with it.

Analysts believe that at least 20% of all Bitcoin has been lost, with the bulk of that money irreversibly lost.

According to CryptoAssetRecovery.com, Bitcoin will lose between $272 million and $545 million this year.