Like most other cryptocurrencies, the value of Bitcoin plummeted on Friday. The most significant digital currency was worth about $28,500 (around €26,500) around 9 PM Belgian time. It’s the eighth consecutive week that Bitcoin has fallen in value, and it’s the first time in more than a decade. Stock markets rose at the end of the trading week.
The decline in the value of cryptocurrencies is partly due to fear of interest rates prevailing among investors. Higher interest rates are generally considered unfavorable for stocks and other risky investments. The collapse of the cryptocurrency Terra earlier this month has also shaken investor confidence in the cryptocurrency.
On the other hand, stock markets have rebounded in recent days. Investors reacted, among other things, to a report that the Fed’s preferred measure of inflation rose less quickly in April than the previous month. It may be a sign of slowing price increases in the US.
Bitcoin has lost about 3.5 percent in the past 24 hours, according to CoinMarketCap, which tracks cryptocurrency prices. The value of the coin is approaching its lowest level this year. At the beginning of this year, bitcoin was still worth nearly $48,000 (about 42,250 euros) and that’s now 40 percent less. Ether, the second largest cryptocurrency by market capitalization, has lost nearly 7 percent in the past 24 hours.
Watch also: explained. What do you want to know about Bitcoin?
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