Bitcoin price drops below $ 43,000
Bitcoin’s 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 world’s best-known cryptocurrency sank below the $ 43,000 mark on the Luxembourg trading platform Bitstamp and hit the lowest level since the beginning of December at $ 42,413. Other important digital currencies such as ether have also shown strong losses since the middle of the week.
On the market, the weakness of the digital currencies was justified by the monetary policy in the USA. In the world’s largest economy, interest rates could rise faster than previously thought. The reason is the minutes of the latest interest rate meeting of the US Federal Reserve. The transcript published the previous day shows that Fed members rate the inflation trend as higher and more stubborn than previously assumed. In the market, this was seen as an indication of a more rapid exit from the loose monetary policy.
“The concern about 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 after reaching a record high of just under $ 69,000. With Bitcoin and other cryptocurrencies, there are always strong price fluctuations, often without a suitable message. Experts therefore urgently warn investors about the risks of strong price movements.
/ jkr / jsl / jha /
FRANKFURT / LUXEMBOURG (dpa-AFX)
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