Finance

Bitcoin below $50,000, more than 30 percent lower than record level

One bitcoin is worth around $47,400 at the time of publication, according to CoinMarketCap. That website monitors various platforms on which cryptocurrencies are traded and publishes the weighted average of the prices on these platforms.

Uncertainty about omikron

The fall in the cryptocurrency is a sign that investors want to take as little risk as possible right now. There is uncertainty in the financial markets because it is still unclear what the consequences will be of the new corona variant omikron.

On top of that, there is high inflation in many countries. As a result, central banks may be forced to phase out their accommodative monetary policy. This could be done, for example, by raising interest rates. This makes investing, for example in shares, less attractive.

price fluctuations

During the price drop in the past 24 hours, about 2.4 billion dollars, about 2.1 billion euros, in value of crypto investors evaporated, reports Bloomberg news agency. That is the largest amount since September 7.

Yet the share price is still more than 60 percent higher than at the beginning of the year and there are few other investments with such high returns. Of course, it depends on when the investment was made, bitcoin is known for its significant price fluctuations.

A fall in price is therefore seized by many investors to be able to buy some bitcoins again. Such as the Central American country of El Salvador, which has accepted bitcoin as legal tender.

President Nayib Bukele tweets enthusiastically that his country has bought 150 bitcoins, at a rate of $48,670 per coin.

“El Salvador just bought the dip,” the president tweeted in a popular saying that refers to the investment tactic of buying when something falls in value, hoping it will rise.

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