The value of the first cryptocurrency steadily declined during the trading session on Monday. Despite the fact that the coin hesitantly tested the resistance level on the approach to $60,000 in the afternoon, the correction process soon began, and BTC came close to $57,000. So, at the time of writing, bitcoin has sunk by 5.3% and is trading near the $56,850 mark.

The value of the leading altcoins is actively adopting the trend of the main digital coin: the price of Ethereum decreased by 5% to $4,135, and Binance Coin lost 4.31% and is trading at $567.

Only two popular alternative coins reported unexpected spectacular growth: AVAX and Solana. So, over the past seven days, the AVAX token has gained 34% with a global drop in the cryptocurrency market, and Solana has grown by 2.23% since Sunday. At the same time, the total market capitalization for the day decreased by 2.8% to $2.57 trillion.

Following the results of the past week, BTC lost more than 13% after seven weeks of permanent increase.

So, on Friday, the value of digital gold fell to a low of $55,500 for the first time since October 13. A short respite during the weekend could not change the general bearish trend of the first cryptocurrency.

Experts suggest that the roller coaster of the virtual asset market has begun against the backdrop of an important statement by the US Federal Reserve. Recall that on November 3, the Fed announced a reduction in the volume of asset purchases. This, in turn, will lead to a slowdown in the operation of the printing press at the current moment and its complete cessation by mid-2022.

Analysts suggest that in the current situation, the digital currency market may suffer primarily as the most profitable and riskiest option for investment.

At the same time, in the middle of last week, the dollar index reached a 16-month high and reported the indicator above 96.2. Such a spectacular strengthening of the US currency occurred against the background of the prospect of tightening monetary policy.

Market analysts are confident that a strong dollar is proof that multiple positive factors stimulating the growth of global assets (including virtual ones) over the past 1.5 years are beginning to unfold.

An unexpected threatening factor for the value of bitcoin was the latest news from the creditors of the bankrupt cryptocurrency exchange Mt. Gox. The day before, the manager of this online digital currency exchange service announced the approval of a plan to return BTC. Experts fear that a one-time hit of a large volume of bitcoins on the market can instantly collapse the rate of the main digital coin.

By the way, cryptanalysts draw vivid parallels between the current situation on the virtual asset market and the crypto winter of 2018. Then its arrival was marked by a decline in bitcoin below the 200-day average (MA). At the moment, the MA of the first cryptocurrency is at around $48,000 – 20% below the current levels. A sudden drop below this line will be the beginning of a new bitcoin crypto winter.

Experts say that this week the expected statement of US President Joe Biden on the choice of a candidate for the position of head of the Fed will be in the focus of attention of participants in the crypto market. Analysts are confident that the decision on this issue can greatly affect the process of regulating the global digital currency industry.