published9. May 2022, 11:33
Various cryptocurrencies are currently under a lot of pressure. Bitcoin and Ethereum have recently fallen sharply.
The price is at its lowest level since January.
REUTERS
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Bitcoin and other cryptocurrencies are depreciating.
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The reason for the bad mood on the crypto market is the prospect of rising interest rates.
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One bitcoin currently costs around $33,3000.
Bitcoin and other digital currencies continue to be under pressure. On Monday, the price of the largest internet currency by market value on the Bitfinex trading platform fell to around 33,300 US dollars. This is the lowest level since January. A few days ago, a bitcoin cost $40,000. Other crypto assets such as ether also continued to fall in value at the start of the week.
The prospect of rising interest rates is considered to be decisive for the bad mood on the crypto market. “The fear of interest rates has stockbrokers on both sides of the Atlantic under control,” commented Bitcoin expert Timo Emden from Emden Research. Not only in the USA, the world’s largest economy, but also in many other countries, the central banks are fighting the high inflation with a tighter monetary policy.
Rising interest rates usually weigh on risky assets such as digital currencies. In addition, Bitcoin and other crypto assets do not generate any current income such as interest. When interest rates rise, interest-free investments become less attractive than interest-bearing securities such as fixed income securities.
(DPA/fur)