In the crypto market, speculators continue to make money after the recent rally. On Friday, Bitcoin, the oldest and best-known digital currency, was trading at around $28,000.
The hefty gains from mid-April, when the $30,000 mark was crossed for the first time since June 2022, are a thing of the past. However, an increase of almost 70 percent is still on the list for 2023.
Other crypto assets such as ether have also recently given up on profits. On Friday, an ether cost about $1900 – down from about $2100 in mid-April.
Particularly risky
Many digital stocks have recently been driven primarily by monetary policy and the economic outlook. The strong price gains of almost two weeks ago were supported by the expectation that major central banks such as the US Federal Reserve would slow down in their fight against high inflation.
Recently, however, economic pessimism has dominated, weighing on the mood in the financial markets. Weak economic data from the US in particular was decisive.
Bitcoin, Ether and other crypto assets often move in tandem with traditional financial markets. Digital assets are considered to be highly risky financial investments that can fluctuate wildly in price. The price impact of the general mood on the stock markets is correspondingly large.
(dsc/sda/awp/dpa)
Source: Watson
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
