The price of the cryptocurrency Bitcoin fell below $60,000 after Changpeng Zhao (CZ), who resigned as CEO of Binance ahead of the US Federal Reserve’s interest rate decision, was sentenced to 4 months in prison.

According to data from the analysis firm Coinmarketcap, the value of the global cryptocurrency market, including Bitcoin, decreased by approximately 5.2% in 24 hours, falling to $2.21 trillion.

The price of Bitcoin, the largest cryptocurrency, dropped to $59,120 in the last 24 hours following Changpeng Zhao’s 4-month prison sentence before the Fed’s interest rate decision.

Trading at $59,750 as of 23:38 GMT, Bitcoin’s weekly loss approached 10%.

Bitcoin, which reached its all-time high of $73,750 on March 14th, has experienced a decline of over 18% in the past 46 days.

The price of Ethereum, ranked 2nd in terms of market capitalization, also dropped below $3,000. Ethereum traded at $2,954 as of 23:38 GMT.

Analysts noted a negative trend in the crypto market following data signaling continued inflationary pressures in the US.

Analysts also stated that stronger-than-expected labor costs in the US indicate persistent inflationary pressures, and investors in the crypto market are cautious ahead of the Fed’s interest rate decision tomorrow.

Furthermore, analysts emphasized that the unexpected strong increase in housing prices suggests a recovery in the US real estate market, indicating that the fight against inflation in the US could last longer than expected, thus delaying the possibility of a Fed interest rate cut until the fourth quarter.

Changpeng Zhao’s 4-month prison sentence, as a result of an agreement with the US government in November 2023, after resigning as CEO of the cryptocurrency exchange Binance, also had an impact on the sharp sell-offs in the crypto world.

In the sentencing hearing at the Seattle Federal Court, prosecutors sought a 3-year prison sentence for Zhao for deterrence, while defense attorneys requested 5 months of probation.

Zhao’s attorneys argued that the former CEO acknowledged his mistake, voluntarily came to the US, had not violated laws previously, and cooperated.

Once considered the “most powerful person in the crypto sector” and known as “CZ,” Zhao received a 4-month prison sentence for “failing to provide adequate protection against money laundering.”