A few days ago, a bitcoin cost $40,000. Other crypto assets such as ether also continued to fall in value at the start of the week.
The prospect of rising interest rates is considered to be decisive for the bad mood on the crypto market. “Fear of interest rates has stockbrokers on both sides of the Atlantic under control,” commented Bitcoin expert Timo Emden from Emden Research. Not only in the USA, the world’s largest economy, but also in many other countries, the central banks are fighting the high inflation with a tighter monetary policy.
Rising interest rates usually weigh on risky assets such as digital currencies. In addition, Bitcoin and other crypto assets do not generate any current income such as interest. When interest rates rise, interest-free investments become less attractive than interest-bearing securities such as fixed income securities.
Source: Nachrichten
