Bitcoin is trading at $19,317 on crypto platform Coindesk after a 30% loss in a week.
The currency has also been on the slide in recent weeks. In April, it was still well above $40,000. Since the beginning of this year, the value has fallen by 60%.
Downward spiral
In May, the downward spiral for bitcoin started. The collapse of the so-called stable coin terra, pegged to the dollar, gave the first impetus among investors to sell digital coins en masse.
This month, the vicissitudes surrounding crypto company Celsius came over again. The report that it was going to freeze the assets of its customers due to extreme movements in the financial markets, took bitcoin under.
In addition, the changed policy of central bankers plays a role in the greatly reduced enthusiasm to invest in cryptocurrencies. The tightening of their monetary policy thanks to interest rate hikes has ended the era of ‘free money’. Cryptocurrencies are risky investments for investors, they are sold when the exchanges fall.
In 2021, investors in bitcoin and other currencies still had a heyday. At the end of November, the cryptocurrency hit a record of just under $70,000.