While as recently as mid-September it seemed that Bitcoin could rely on the psychological $20,000 threshold to keep it from falling lower, this virtual fortress has likely fallen in the past week.
Bitcoin lost 15 percent
Those who invested in the most widely used cryptocurrency Bitcoin in mid-September this year, thinking that their deposit would appreciate in value, probably cried over the profits. The virtual currency has lost about 15 percent of its value in the last two weeks. In mid-September, Bitcoin seemed to have breathed a massive rally after the wave of earlier sell-offs.
Investors prefer certainty
However, Bitcoin is increasingly behaving as a specific technology stock and is copying the development on the stock exchange floors, which are also experiencing difficult times. According to experts, it is not only Bitcoin that is reaping the fruits of the hawkish policy of the US central bank, which is joined by central banks from other countries due to high inflation. Investors thus prefer safer assets whose yields are increasingly solid.
Bitcoin is dragging other cryptocurrencies down with it. Similarly, Ethereum has also weakened, writing off nearly six percent over the past week. Since last November, its value has already fallen to about a quarter.
