- Bitcoin is back on the upswing after "Black Monday"
Bitcoin and other cryptocurrencies** are on the rise again after their most severe price drop in over two years last Monday. On Thursday night, the Bitcoin price briefly rose above $62,000 and then stabilized at around $61,000. Just a week ago on "Black Monday," the price of the oldest and most well-known cryptocurrency temporarily fell below the $50,000 threshold, reaching its lowest point since February.
The second most important cryptocurrency, Ether, also recovered significantly by the end of the week. The digital currency on the Ethereum blockchain was hit harder than Bitcoin on "Black Monday," falling by around 20% against the dollar. However, Ether nearly fully made up for its losses during the week.
However, both major digital currencies are still a significant distance from their all-time highs, especially Ether. Ether's highest price was $4,878, reached on November 10, 2021. Its current price is around $2,700. Bitcoin reached its previous all-time high on April 13, 2024, with a price of $73,738.
There are many reasons for the price fluctuations. Generally, recession fears weigh on the markets, as seen in the downturn of stock markets on "Black Monday." Cryptocurrency markets also negatively react to interest rate hikes by central banks, as investors have many alternative options for profitable investments.
Political conditions, especially in the US, also play a significant role. Prominent crypto investors like the Winklevoss twins, Tyler and Cameron, are betting on a Donald Trump victory in the upcoming US presidential elections. The former president recently promised to keep Bitcoin largely unregulated and provide cheap electricity for Bitcoin mining at the Bitcoin conference in Nashville. US President Joe Biden is very skeptical of Bitcoin and other cryptocurrencies. However, Vice President Kamala Harris has recently sought contacts with the crypto industry.
The price development over the past few weeks once again demonstrates the volatility of cryptocurrency trading. Consumer advocates continue to warn of potential significant price losses in Bitcoin and other cryptocurrencies.
The European Union has expressed its concern about the energy consumption of cryptocurrency mining, potentially leading to regulatory measures. Despite the volatility, major tech companies like Tesla and PayPal continue to invest in Bitcoin, viewing it as a form of digital gold.
