Cryptocurrency
Bitcoin is losing value: lowest price in four weeks
Bitcoin price drops to a four-week low below $ 43,000. With cryptocurrencies, there are always strong price fluctuations. (Symbol image)
© SheYing / Costfoto / Picture Alliance
The Bitcoin price fell below the $ 43,000 mark for the first time in four weeks. The cryptocurrency has been losing value significantly since November. The reason for the exchange rate weakness is the US monetary policy.
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 fell below the $ 43,000 mark and hit the lowest level since the beginning of December at $ 42,413. Other important digital currencies such as ether have also shown price losses since the middle of the week.
Bitcoin exchange rate weakness due to US monetary policy
On the market, the weakness of the digital currencies was justified by the US monetary policy. In the world’s largest economy, interest rates could 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.
“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 turning of the interest rate screws, Bitcoin can no longer benefit from the extremely low interest rates as in previous years.
Falling course since November
Bitcoin’s price has tended to decline since November after 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 about the risks.
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