Digital currency in crisis: Bitcoin is worth less than $ 20,000

Status: 18/06/2022 12:59

The Descent Continues: Bitcoin has broken through the psychologically important threshold of $ 20,000. Although digital currencies traditionally fluctuate strongly, are investors now threatened by a new “cryptocurrency winter”?

The digital currency Bitcoin has dropped well below the $ 20,000 mark – in the early afternoon it was around $ 19,360. This continued the downward trend of the cryptocurrency.

Ten days ago, Bitcoin was still around $ 30,000, on January 1st it was around $ 47,700. This means that nearly 60 percent of the value was lost in the past half year. Last November, Bitcoin even hit a record high of $ 69,000.

Nothing for the weak nerves

Financial experts blame concerns about inflation and rising interest rates for the downward trend. Apparently some investors are currently shying away from risky investments and withdrawing from the cryptocurrency industry.

Bitcoin and other digital currencies have traditionally been subject to severe fluctuations. There have already been several so-called “crypto winters” in recent years, such as 2014 and 2018, where prices plummeted before things then rose again. This time around, however, the economic environment is even more difficult than it was then.

Loss of confidence from Celsius

At the same time, two major cryptocurrency projects got into trouble, which accelerated the descent. First the Earth-Moon digital currency project failed, then Celsius, a kind of bank for cryptocurrency transactions, had to stop withdrawing.

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