The cryptocurrency has lost a lot of its value since November. The rate fell below $ 40,000 on Monday.
The Bitcoin rate is on the decline.
On Monday the price fell just below 40,000 dollars.
That's what it's all about
In November, the Bitcoin price reached a record high of around 69,000 dollars.
Since then the price has fallen sharply.
Other crypto currencies are also losing value.
Bitcoin fell below $ 40,000 on Monday for the first time since September. The oldest and best-known cryptocurrency fell in the afternoon on the Luxembourg trading platform “Bitstamp” to 39,559 dollars. Bitcoin was trading around 40 percent below its record high of around $ 69,000 on November 10th.
Other major digital currencies like ether also came under pressure. Ether fell below $ 3,000. According to the industry portal “Coinmarketcap”, the total market for all cryptocurrencies is again below the two trillion dollar mark. Most recently it was 1.86 trillion dollars.
On the market, the weakness of the digital currencies was justified by the US monetary policy. The Fed could raise interest rates faster than previously thought. In the meantime, the investment bank Goldman Sachs even expects four key rate hikes this year. The first increase could take place in March.
The $ 40,000 mark is psychologically important
“Investors continue to turn their backs on high-risk asset classes and secure their belongings,” commented analyst Timo Emden from Emden Research. “Some investors are currently standing between the decision to sit out their losses or to cash in on the book profits that still exist.” The $ 40,000 mark is psychologically important. According to Emden, investors should therefore be prepared for further risks.
In addition to increased interest rate expectations, according to experts, the situation in Kazakhstan is also burdening Bitcoin. The mining of cryptocurrencies plays a major role there. In view of the unrest, the government has since turned off the Internet. According to experts, the procedure could at least have increased uncertainty.
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