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A bad weekend is followed by an even worse start to the week for crypto investors: Bitcoin and other cryptocurrencies lost massively in value.
The situation on the cryptocurrency market worsened once more at the start of the week following a downward slide over the weekend. On Monday morning, a bitcoin cost a little less than 33,500 US dollars. In the days before, the oldest and largest digital currency in terms of market value had come under heavy pressure. On Saturday it had fallen to a six-month low. On Thursday it had cost over $ 10,000 more.
Other crypto assets such as the market’s number two, Ether, continued the crash on Monday. At the start of the week, the around 17,000 digital currencies currently in existence were worth a good 1.35 trillion dollars. Before the recent descent it was more than two trillion dollars. Bitcoin has lost almost half of its value in the last few months.
Central banks burden crypto
Crypto assets have recently been weighed down by the expectation that the Federal Reserve will soon be able to fight high inflation with interest rate hikes. Rising interest rates are poison, especially for particularly risky investments such as digital currencies, because they tend to increase the attractiveness of safe and interest-bearing investments such as government bonds.
Another burden for Bitcoin and Co. is the critical attitude of the Russian central bank: The central bank recommends that the legislator completely ban the use of digital currencies. The production of crypto values would also be affected, which is carried out by complicated calculations on mostly energy-intensive computer systems. Russia is considered one of the strongholds of so-called crypto prospecting or mining. The process has fallen into disrepute due to its high energy consumption.
SDA/dj
