The price of the oldest and best-known cryptocurrency fell to 51,600 US dollars (around 47,600 euros) on the Bitstamp trading platform in the morning, reaching its lowest level since February. Since Friday evening, Bitcoin has lost about 10,000 dollars in value. The last time there was a similarly sharp drop in price was in June 2022.
Crypto assets have soared in recent months. Florian Wimmer is the founder and managing director of Blockpit, a company based in the Linzer Tabakfabrik.
Bitcoin had already fallen sharply last week. Analyst Timo Emden from Emden-Research spoke of a “cocktail of uncertainty” that is currently weighing on Bitcoin. “In particular, the renewed fears of recession in the USA are catching investors off guard,” said Emden. Recently, there had been several disappointing economic data releases in the USA. In particular, an unexpectedly weak labor market report from the US government sparked concern. In July, unemployment in the world’s largest economy rose to its highest level in almost three years.
Other cryptocurrencies also under selling pressure
In addition to Bitcoin, other cryptocurrencies were also under strong selling pressure at the beginning of the week. The price of Ether fell by around 15 percent to 2,340 dollars. With the recent price losses, the market capitalization of all cryptocurrencies has decreased significantly. It fell by around 14 percent to 1.85 trillion dollars. Bitcoin’s share was recently estimated at around 56 percent.
A week ago, Bitcoin had risen to just under $70,000. Statements by Republican presidential candidate Donald Trump had pushed the cryptocurrency toward a record high, last reached in March at just under $74,000. Trump had promised to make the US the “crypto capital of the planet and the Bitcoin superpower” if he returned to the White House after the election in November.
The price development over the past week shows once again how susceptible to fluctuations trading in cryptocurrencies is. There are therefore repeated warnings about possible large price losses with Bitcoin and Co.
