Cryptocurrency - Bitcoin falls to its lowest level since February
The Bitcoin gave way significantly in early trading on a Friday. The price dropped below the $54,000 mark and reached its lowest level since late February. The price was last at $54,025, representing a decline of 8.3% compared to the previous day. Bitcoin, the oldest and most important digital currency, has been under pressure for weeks. The price was around $72,000 at the beginning of June. Other digital currencies like Ethereum, BNB, and Solana also suffered significant losses.
The losses in Bitcoin and other cryptocurrencies on Thursday and Friday morning were attributed to a statement from the bankruptcy trustee of the failed cryptocurrency exchange Mt.Gox. The trustee had announced that it would distribute a large number of Bitcoin tokens (BTC) to affected creditors. The creditors have been waiting for years for a refund of their coins. This could lead to a flood of offers on the market.
It is unclear how the former Mt.Gox customers will behave. If a significant portion of them want to sell the rescued Bitcoin holdings in the short term, this would lead to an oversupply of Bitcoin on the market.
The fear of an oversupply of Bitcoin on the market is also fueled by the fact that law enforcement agencies are sitting on large Bitcoin holdings that they have secured from criminals. The bad mood on the crypto market in recent weeks is also related to the US Federal Reserve. It is currently unclear when and to what extent the Fed will ease its monetary policy. The calculation is: As long as interest rates remain relatively high, investors have many options to invest their money profitably. In this case, the crypto market suffers. However, if interest rates for traditional investments fall, crypto investments become more attractive.
- The potential flood of Bitcoin tokens from the Mt.Gox creditors could impact the stock exchange in Frankfurt am Main, as many German investors are actively trading cryptocurrencies.
- Despite the pressure on Bitcoin, the Frankfurt Stock Exchange continues to witness interest in other cryptocurrencies such as Ethereum, with many investors viewing these digital currencies as potential alternatives.
- Some financial analysts predict that the German stock exchange in Frankfurt am Main could see increased trading activity in cryptocurrencies like Ethereum, as investors seek to diversify their portfolios during these uncertain market conditions.
