Rising interest rates and stock market fluctuations are currently causing problems for the most popular cryptocurrencies.
Bitcoin & Ethereum courses collapse by around 15 percent
After the Bitcoin price had leveled off at around 40,000 US dollars in recent months, the crypto currency recently suffered a price drop of around 10,000 US dollars. The Ethereum course shows a similar kink. It seems that cryptocurrencies are suffering the same fate as stock prices.
50 percent loss within half a year
The price of Bitcoin fell by around 14 percent, that of Ethereum even dropped by 15 percent. For Bitcoin, whose value is now just under 32,000 euros, this is the lowest price since July last year. Remarkable when you consider that the cryptocurrency reached its all-time high of over 65,000 euros in November 2021 – a loss of more than 50 percent within half a year.
The Ethereum price fell from around 2800 to below 2300 euros – Ethereum also peaked in November 2021.
War, inflation and rising interest rates are troubling cryptos
The price losses are probably closely related to the falling prices on the stock exchange, especially when the prices of technology companies suffer a low, it also hits the cryptocurrencies. After the interest rate hike in the USA, there was severe turbulence on the stock exchanges. The Dow Jones lost around 1000 trading points and the technology-heavy Nasdaq also closed the trading day with a minus of around 5 percent.
When interest rates rise, less risky alternatives to cryptocurrencies – such as bonds – become more attractive again. As a result, a reallocation of capital is also taking place, this time affecting cryptocurrencies as well.
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