The digital currency Bitcoin fell below the $ 30,000 mark for the first time in a long time on Tuesday. In the morning, the oldest and largest crypto investment by market value on the Bitstamp trading platform cost $ 29,500 at a low. That is the lowest level in about a month. But it is not far to the annual low. Other digital stocks such as the number two on the market, ether, were also under pressure. The financial service Bloomberg tracks the prices of the crypto currencies summarized in the Galaxy Crypto Index, which fell by four percent on Tuesday. There are currently some reasons that speak against crypto investments. This includes China’s tough stance towards the producers, so-called miners, of Bitcoin and other Internet currencies. The recent deterioration in sentiment on the stock market also weighed on risky assets such as Bitcoin & Co. In addition, large central banks such as the European Central Bank (ECB) are intensifying their efforts not to fall behind in the race for the new types of digital currencies. And on Monday, US Treasury Secretary Janet Yellen urged the country’s top regulators to accelerate their deliberations on new rules for monitoring digital currencies, the value of which is tied to conventional foreign exchange.
Cryptocurrencies like Bitcoin are extremely volatile. This can already be seen from the fact that a Bitcoin was worth more than twice as much just three months ago as it is now. A record high of nearly $ 65,000 was reached in mid-April. After that, however, the prices of many digital stocks fell.
The now broken mark of $ 30,000 was considered symbolically important by some financial traders. If such brands fall, it can then come to a sell-off and go further downhill – or not, forecasts should be viewed with particular caution in the notoriously volatile crypto market. In any case, Vijay Ayyar, the head of the Asia-Pacific region at the cryptocurrency exchange Luno in Singapore, dared the following forecast: “We will move between 20,000 and 40,000 dollars for the rest of the year.” The bright prospects for the crypto business, which drove Bitcoin to a record price of almost $ 65,000 in mid-April, are now being called into question. The financial service Bloomberg has calculated: According to this, Bitcoins only rose by around two percent this year, while the broad US stock index S&P 500 rose by around 13 percent, making it a significantly better investment. “Investors who invest in cryptocurrencies know that volatility will be part of it,” said Michael Sonnenshein, CEO of Grayscale Investments, in an interview on Bloomberg TV.