On the last day in April, bitcoin on crypto platform Coindesk faced a 2.5% loss at a stand of $38,500. As a result, the digital currency saw on balance almost 20% evaporate compared to the start of the month.
Bitcoin’s sharp decline is remarkable. At the end of March, the cryptocurrency hit its highest level above $47,000. In the advance a month earlier, Russia’s willingness to accept bitcoins with its oil sales also played a role.
In April, bitcoin quickly suffered. In particular, the intention of the US central bank (Fed) to raise interest rates considerably to combat the rapidly rising inflation has dampened the enthusiasm to get into digital currencies. At the Fed meeting next week, a rate step of 50 basis points is expected.
Furthermore, it remains to be seen what central bankers have in store for the regulation of cryptocurrencies. A director of the European Central Bank (ECB) recently called for restrictions on digital currencies worldwide to prevent systemic risks.
At the end of last year, bitcoin had a wonderful ride up. The digital currency hit a preliminary all-time high of just below $70,000 at the time. At the time, the great enthusiasm among large companies to embrace bitcoin gave the impetus to a wave of buy orders.
The news that another country has accepted bitcoin as legal tender is not very impressive. The Central African Republic has also given the green light after El Salvador.