Cryptocurrency crash: Bitcoin has fallen to the deepest level since February

Cryptocurrency crash: Bitcoin has fallen to the deepest level since February

The Bitcoin course experienced another significant decline on Monday, which makes many investors listen and raises questions about the stability of the entire cryptocurrency market. The Bitcoin fell to $ 51,600 on the Bitstamp trading platform, the lowest level since February, and has lost considerable $ 10,000 in the past few days. This development is not only alarming for Bitcoin owners, but also attracts the attention of the financial world because it could influence all trust in digital currencies.

Market reactions on weak economic data

In the past few weeks, several disappointing economic indicators from the United States worried the market participants. Analyst Timo Emden from Emden-Research described the current situation as a "cocktail of uncertainty". In particular, a weak labor market report ensured concerned reactions, since unemployment in the United States had increased to the highest value in July for almost three years. This has caused many investors to become more careful in the cryptocurrency landscape.

Further cryptocurrencies under pressure

Not only the Bitcoin is affected by these turbulence. The second most important cryptocurrency, ether, also suffered a decline of around 15 percent and fell to $ 2,340. These losses have an impact on newly established Ethereum ETFs that aim to attract new investors. Overall, the market capitalization of all cryptocurrencies has dropped by around 14 percent and is now around $ 1.85 trillion. The Bitcoin currently accounts for around 56 percent of this market capitalization and is therefore particularly badly affected by the developments.

look at the past and crisis of trust

a week ago the Bitcoin course had risen to almost $ 70,000, partly because of optimistic statements by Donald Trump, the Republican presidential candidate. Trump had promised to make the United States a crypto capital and Bitcoin superpower if he was to win the election in November. This perspective had made many investors curious, but the current developments once again show the extreme volatility that shapes cryptocurrency trade.

The meaning for investors

The recent course declines in the Bitcoin market underline the risks associated with investments in digital currencies. Experts repeatedly warn of possible major price losses, which, as the current situation shows, can occur at any time. These developments could not only affect individual investors, but also shake confidence in cryptocurrency as a whole and ultimately impair acceptance of digital currencies in the general public.