On Friday, the oldest and largest crypto asset by market value fell to its lowest level since last August. The low was $38,259 on the Bitstamp trading platform. The day before, the course was still well over $43,000.
Other digital stocks also fell sharply in some cases. The second largest cryptocurrency by market value, Ether, fell about 8 percent to trade well below the $3,000 mark. The value of all around 17,000 cryptocurrencies is currently around $1.8 trillion. That’s a good trillion fewer than two months ago. A record value of around $2.9 trillion was marked in November.
US monetary policy is currently a significant burden for risky investments such as digital assets. It is expected that the US Federal Reserve will soon react to the high inflation by raising interest rates. The Fed itself has so far signaled three hikes for this year, and four tightening steps are currently expected on the financial markets. Rising interest rates are usually poison for risky asset classes, which include Bitcoin and Co due to their sometimes extreme price fluctuations.
Source: Nachrichten
