Bitcoin is Losing Value Again
Bitcoin once again lost a lot of value in the night from Monday to Tuesday. The most important digital currency was worth about USD 23,000. The day before, bitcoin also fell sharply.
Investors fear higher interest rates from the US Federal Reserve due to high inflation. Cryptocurrencies are seen as risky investments and when interest rates rise, many investors choose to take less risk.
There are also problems with crypto companies and they may cause investors to lose confidence. Cryptobank Celsius Network froze all transactions on Monday, saying it was due to “extreme market conditions”.
Bitcoin’s value fell more than 10 percent in the past 24 hours and 22 percent in the last week to its lowest level in a year and a half. At the beginning of the year, a bitcoin was still worth more than double at $ 48,000.
Ether, the second-largest cryptocurrency, has fallen more than a third in value in the past week.