The cryptocurrency lost about 10,000 dollars in value since Friday evening. A comparable sharp price drop occurred last in June 2022.
Bitcoin continued to lose significantly ground on Monday amidst a generally gloomy mood in the financial markets. The price of the oldest and most well-known cryptocurrency fell in the morning on the Bitstamp trading platform to as low as 51,600 US dollars (around 47,600 euros), reaching its lowest point since February. Since Friday evening, Bitcoin has lost about 10,000 dollars in value. A comparable sharp price drop occurred last in June 2022.
Last week, Bitcoin had already significantly declined. Analyst Timo Emden from Emden-Research spoke of a “cocktail of uncertainty” that is currently weighing on Bitcoin. “In particular, the newly reignited recession fears in the USA catch investors off guard,” said Emden. Recently, there had been repeatedly disappointing economic data from the United States. In particular, an unexpectedly weak employment report from the US government raised concerns. In July, unemployment in the world’s largest economy rose to its highest level in nearly three years.
Other cryptocurrencies also under pressure
In addition to Bitcoin, other cryptocurrencies were also under significant selling pressure at the beginning of the week. The Ether price plummeted by around 15 percent to 2,340 dollars. With the recent price losses, the market capitalization of all cryptocurrencies has decreased significantly. It fell by about 14 percent to 1.85 trillion dollars. The Bitcoin share was last estimated at about 56 percent.
A week ago, Bitcoin had risen to just below 70,000 dollars. Statements from Republican presidential candidate Donald Trump had driven the cryptocurrency towards its record high, which was last reached in March at just under 74,000 dollars. Trump promised to make the USA the “crypto capital of the planet and a Bitcoin superpower” if he were to return to the White House after the election in November.
The price development over the past week once again shows how volatile trading in cryptocurrencies can be. Therefore, there are repeated warnings about possible large price losses with Bitcoin and Co. (APA/dpa-AFX)