On crypto platform Coindesk, bitcoin sees another 10% of its value evaporate to a position of $35,580 around 8 a.m. (Dutch time). This means that the digital currency has returned to its lowest level since the end of July 2021. In November, a record level of just below $69,000 was on the plates.
The new year has gotten off to a particularly bad start for bitcoin investors. On balance, the value of the crypto currency has already fallen by almost 25% in 2022. There was a small rebound to $43,000 in mid-June, but bitcoin has since gone into free fall.
Decreased willingness
In the gloomy state of affairs in the crypto market, the greatly reduced willingness among investors to invest in risky investments plays a very large role. After the mood was still good until mid-November last year, there were more and more signals that central bankers, especially in the US, are preparing to make a withdrawal with monetary support. This intention has put considerable pressure on the enthusiasm for digital currencies.
In addition, there are more and more signals that governments and regulators want to limit the crypto trade. In Russia, the central bank would like to ban the use and mining of cryptocurrencies in the country to ensure financial stability. It has been banned in China since May.