From Friday to Saturday, the prices of almost all cryptocurrencies continued to fall sharply. Bitcoin has lost around 8 percent in value in 24 hours, Ethereum over 12 percent.

The Bitcoin course is in free fall.

rude awakening - cryptocurrencies plummet overnight

In the last two months, the largest cryptocurrency lost almost over 50 percent in value. The image shows pedestrians walking under a bitcoin symbol in Pristina.

rude awakening – Cryptocurrencies plunge overnight

In the photo you can see a man in El Salvador wearing an anti-Bitcoin t-shirt. The country introduced the cryptocurrency as its official means of payment just over a year ago.

This is it

  • Concerns about tighter US monetary policy have caused cryptocurrencies to crash.

  • Russia is now even considering Bitcoin & Co. on Russian territory.

  • Great Britain, India, Spain and Singapore are also considering stricter regulations.

Cryptocurrencies have been losing value for weeks. Bitcoin's price fell below $40,000 in January, down around 40 percent from the record high of $69,000 on Nov. 10. Now the price drop continues: In the night from Friday to Saturday, the prices of almost all cryptocurrencies fell again sharply. According to “Coingecko”, Bitcoin lost around eight percent in value in the last 24 hours, Ethereum over twelve percent, Binance Coin around 16 percent, Cardano 14 percent and Solana more than 18 percent.

That's why prices are falling

The main reason is probably the tighter monetary policy in the USA. The US Federal Reserve announced it would raise interest rates to curb inflation. This is often poison for risky asset classes, which include bitcoin and altcoins due to their high volatility. This is why investors are nervous.

Various countries have also announced that they will regulate cryptocurrencies more closely, such as Great Britain, India, Spain, Singapore and Russia. The Russian central bank is even considering a complete ban on cryptocurrencies on Russian soil. According to Reuters, this could mean that the country will stop mining Bitcoin & Co. as well as trading in digital currencies.

El Salvador continues to buy Bitcoin

Nayib Bukele remains optimistic. “El Salvador has just bought 410 Bitcoin,” tweeted the country's president. That cost “only” $15 million. “Some people are selling far too cheaply right now.”

El Salvador introduced Bitcoin as an official means of payment just over a year ago. Since then, it has been possible in the country to pay taxes or buy property with Bitcoin. The current loss in value of the largest cryptocurrency should now also make itself felt in the country's treasury.

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By Teresa Tapmleton

Teresa Tampleton has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Nizh TEkegram, Teresa Tampleton worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teresa@ntelegram.com 1-800-268-7341

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