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Value of bitcoin drops to lowest level in months

paul nwogo by dominicnwogo
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Value of bitcoin drops to lowest level in months
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Value of bitcoin drops to lowest level in months,

The value of the bitcoin fell again on Monday and is at the lowest level since July last year. The digital currency was worth less than 33,000 dollars (more than 31,000 euros) on Monday afternoon around 13:30 Dutch time. At the beginning of the year, the value was still at 48,000 dollars (more than 45,000 euros).

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Bitcoin lost more than 5 percent in value in the past 24 hours, according to CoinMarketCap, which tracks the prices of digital coins. Over the past seven days, the value plunged by 15 percent.

The decline takes place at a time when investors have long feared interest rate hikes from the US central bank Federal Reserve (Fed).

Higher interest rates are usually unfavorable for stocks and other risky investments.

In a press conference last week, Fed Chairman Jerome Powell assured that policymakers at the bank will do whatever it takes to curb rising inflation. He emphasized to act “quickly”, which is interpreted by investors as an announcement that interest rates can be raised further quickly.

Last week, the Fed raised interest rates by half a percentage point, after which the Stock Exchange in New York plummeted on the same day.

At the beginning of March, the value of bitcoin, like that of many other cryptocurrencies, went up even higher, after it had fallen sharply earlier in the year due to the Russian invasion of Ukraine.

The value of the coin then came to more than 41,000 dollars, about 37,500 euros.

Value of bitcoin drops to lowest level in months

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