Not only traditional stock markets, but also most cryptocurrencies continue to fall after a weak 2021 year-end. In addition to the well-known restrictions in public life, the US central bank is probably also responsible for this, which will soon have to curb its low rate program due to the incredibly high inflation in the United States. This dramatic downward trend of most cryptos can be analyzed in an exemplary way, especially on the price of Bitcoin, which remains the largest and most valuable cryptocurrency in the world.
In the past 24 hours alone, bitcoin has lost up to 13% of its value at times and is currently trading at only around $38,000 per coin. This means that crypto (hardware wallet from 59 euros at Amazon) is currently worth 45% less than in November, which overall can definitely be called a crash. Of course, not much remains among crypto investors of the good mood that reigned on Nov. 10, 2021 when Bitcoin hit its previous all-time high of nearly $68,800.
Meanwhile, analysts expect this negative trend not to change in the short term, although there hasn’t been any particular bad news for digital currencies in the crypto news recently that could have triggered a such crash. However, other observers would also like to see a trend similar to that seen in September and October 2021, when Bitcoin fell to around $41,300 per coin shortly before its peak. Which of these speculative scenarios will come true now is of course completely open. Either way, crypto owners will likely have to brace themselves for another tumultuous few weeks of high volatility.
This article is written for informational purposes only and does not constitute investment advice.