Earlier in the week, Bitcoin’s price temporarily dropped to its lowest level since December 2020. The value of the most important and well-known digital currency recently recovered somewhat, but was still well below Sunday’s level. More recently, a bitcoin cost just under US $ 26,000, about two and a half percent less than at the weekend, when the price had already dropped significantly.
Bitcoin fell temporarily below the $ 25,000 mark at the start of trading on the Bitstamp trading platform on Monday, the lowest level since late 2020.
The main reason for the drop in prices in recent days was the US inflation data released on Friday afternoon. This has fueled expectations of an acceleration of the US interest rate turnaround. Since then, the US dollar has appreciated strongly, bond yields have risen and stock prices have plummeted around the world. Bitcoin’s losses have amounted to around 13% since Friday afternoon, after the price of the digital currency had hovered around $ 30,000 for weeks.
Up until November last year, digital currencies continued to grow despite already high inflation. At the time, some market watchers saw Bitcoin & Co as a hedge against a devaluation of classic currencies such as the dollar, despite extremely strong swings. The picture has now completely changed. Bitcoin has dropped more than 60% since it hit a record high of $ 69,000 in November.