The value of the most important and well-known digital currency has recently recovered somewhat, but was still well below the level on Sunday. Most recently, a bitcoin cost just under $26,000, around two and a half percent less than at the weekend, when the price had already fallen significantly. Bitcoin temporarily fell below the $25,000 mark in early trading on the Bitstamp trading platform on Monday, its lowest level since late 2020.
The most important reason for the price drop in the past few days was the inflation data from the USA published on Friday afternoon. These fueled expectations of an accelerated turnaround in interest rates in the United States. Since then, the US dollar has appreciated sharply, bond yields have risen and stock prices have plummeted worldwide. Bitcoin’s losses have totaled around 13 percent since Friday afternoon after the price of the digital currency had hovered around the $30,000 mark for weeks.
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Until November of last year, digital currencies continued to rise despite already high inflation. At the time, some market observers saw Bitcoin & Co as protection against a devaluation of classic currencies such as the dollar, despite the extremely strong fluctuations. The picture has now changed completely. Bitcoin has fallen more than 60 percent since hitting a record high of $69,000 in November.
/e.g./pc
FRANKFURT (dpa-AFX)
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