Bitcoin is trading at $19,317 on crypto platform Coindesk after losing 30% in a week.
The currency has also been declining in recent weeks. In April, it was still well above $40K. Since the beginning of this year, the value has decreased by 60%.
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In May, the downward spiral of Bitcoin began. The collapse of the so-called stablecoin, which is pegged to the dollar, gave the first impetus among investors to sell digital currencies en masse.
This month, the volatility surrounding cryptocurrency firm Celsius is back again. The report that it was going to freeze the assets of its clients due to extreme moves in the financial markets, took bitcoin under.
In addition, the changing policy of central bankers plays a role in significantly decreasing enthusiasm for investing in cryptocurrencies. Their monetary tightening thanks to high interest rates has ended the era of “free money”. Cryptocurrencies are risky investments for investors, and they are sold off when the stock exchanges fall.
In 2021, investors in bitcoin and other currencies were still at their peak. At the end of November, the cryptocurrency hit a record just under $70,000.
