Digital currencies like bitcoin are known as “decentralized digital currencies,” meaning there is no central point that controls the money supply. Being a medium of exchange other than real money, they are extremely volatile, and fluctuations in their value are much more pronounced than those of a real currency. And this means that they can suddenly reach an all-time high, and in a few months drop more than 50% from that record.
In July 2021, just last summer, the price of Bitcoin fell to minimum levels. And in later months he began to recover until he reached un record of nearly $69,000 in November 2021which means that with only 1 bitcoin you already had more than 65,000 euros in exchange.
But after that high, the volatility of cryptocurrencies started to show again, and Bitcoin broke the uptrend to drop below $33,000 in just 4 months to a level last seen in July 2021as part of a broader pullback in cryptocurrencies triggered by a global flight from riskier investments.
The best-known cryptocurrency fell as much as 4.6% on Monday, trading around $32,800 at 7:07 a.m. in New York. Monday’s sell-off was widespread across the crypto universe, with Cardano down 8.4% and Polkadot down 6.7%. According to data compiled by Bloomberg, “Most of the major virtual currencies were under pressure over the weekend and the bearish mood continued into Monday. Stocks in Asia and Europe also fell, with the Nikkei gauge down 2.5% and the Stoxx Europe 600 index down 2%.
More than 50% drop in its price
According to experts such as Darshan Bathija, CEO of Singapore-based cryptocurrency exchange Vauld, “Faced with rising inflation fears, most investors have opted to play it safe, selling both stocks and cryptocurrencies to reduce risk.” This means that in a few months, Bitcoin has fallen more than 50% in value since the high of November 2021.
“The increase in interest rates is making individual and institutional investors think about the prospects of the cryptocurrency market”, although other listed elements such as gold have risen 2.5%. According to Edul Patel, CEO of Mudrex, an algorithm-based crypto investment platform: “It’s The downward trend is likely to continue for the next few days.adding that Bitcoin could reach the $30,000 level.