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On Thursday, the Bitcoin price fell below the $ 43,000 mark for the first time in four weeks. The cryptocurrency has lost a lot of its value since November.
The cryptocurrency hit a record high in November.
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On the market, the weakness of the digital currencies was justified by the US monetary policy.
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The Bitcoin price fell on Thursday for the second trading day in a row and slipped to its lowest level in four weeks. On Thursday night, the oldest and best-known cryptocurrency on the Luxembourg trading platform Bitstamp sank below the $ 43,000 mark and reached $ 42,413, its lowest level since the beginning of December. Other important digital currencies such as ether have also shown price losses since the middle of the week.
On the market, the weakness of the digital currencies was justified by the US monetary policy. In the world’s largest economy, interest rates might rise faster than expected. The reason is the minutes of the latest interest rate meeting of the US Federal Reserve. The transcript shows that the Fed members rate the inflation trend as higher and more stubborn than previously assumed. This was seen in the market as an indication of a quicker exit from the loose monetary policy.
It’s been going down since November
“The concern regarding a premature tightening of the interest rate reins makes investors touch crypto currencies with sharp fingers,” commented analyst Timo Emden from Emden-Research on the trading activity. As long as the US Federal Reserve signals a premature turn of the interest rate screws, Bitcoin can no longer benefit from the extremely low interest rates as in previous years.
Bitcoin’s price has tended to decline since November, following reaching a record high of just under $ 69,000. With Bitcoin and other crypto currencies, there are always strong price fluctuations, often without a message. Experts therefore warn investors regarding the risks.
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