Bitcoin Falling

 

Bitcoin in free fall: Is the era of cryptocurrencies Ending Now?

Compared to Bitcoin, Dax investors can still consider themselves lucky with their losses since the beginning of the year. In the case of cryptocurrencies, the sell-off from the beginning of the week continues. Since the beginning of January, the oldest and most important cryptocurrency has lost a good third of its value. Most recently, Bitcoin was trading at $26,650. This is the lowest level since December 2020. The second largest cryptocurrency Ether slipped to below 2000 dollars (about 1800 dollars).

Other digital currencies are no better. The analysis platform Coinmarketcap estimates the exchange value of all cryptocurrencies at 1.15 trillion euros. As a result, the sector has lost significantly more than half of its value since November last year, when Bitcoin reached its previous record high of almost $ 69,000. Data from the analysis house Glassnode shows that almost 40 percent of crypto investors with Bitcoin and co. are currently in the red.

"There is an absolute sell-off mood on the market. There is still a threat of a merciless sell-off,“ says Timo Emden from the eponymous research institute Emden Research. Investors would now be faced with the difficult decision of sitting out their losses or taking their book profits at the last second.

Crypto investors are quite used to violent price fluctuations. Now, however, a phase is beginning on the financial markets, which is new for Bitcoin and Co. Investors need to prepare for difficult times. The most important questions and answers.

Crypto earthquakes! Bitcoin & co. Rush into the depths

Experts attribute the bad mood in the crypto market to two reasons. On the one hand, key interest rates are rising in many places. In the future, this will make other forms of investment such as daily or fixed-term deposit accounts and savings accounts more attractive again.

In addition, there is a serious disruption in the well-known cryptocurrency called terausd (also called OST).

This is the so-called" stable currency", which should be distinguished from other digital values by a special value stability. Terraus wants to achieve this through a special algorithm that should keep the currency in a stable ratio to the US dollar.

However, in recent days, the dollar exchange rate has broken away from its peg to the dollar and has collapsed dramatically: from 94 cents it fell to less than 30 cents.

The causes of the accident are still unclear. But the truth is: it sheds a bad light on the already scratched reputation of many cryptocurrencies. They are considered energy-intensive and prone to criminal abuse. The current sharp price fluctuations do the rest.