D.he digital currency Bitcoin lost a lot of ground at the start of the week. The price of the oldest and best-known cryptocurrency dropped to $ 33,447 on the Bitstamp trading platform on Monday night, thereby increasing the weekend’s losses.
On Friday, after a wild record hunt in the past few weeks, Bitcoin still cost up to $ 42,000, but lost around $ 4,000 again by Sunday evening. This downward trend continued on Monday. Most recently, the Bitcoin price was around seven percent below the closing level on Sunday at around $ 35,500.
Bitcoin expert Tilo Emden said the weakness once again illustrates the high volatility of the cryptocurrency: “In view of the fulminant exchange rate heights, profit-taking on a large scale should not come as a surprise. Bulls and bears are currently giving each other a hand and are ensuring correspondingly high volatility, which is still not for the faint of heart. “
Annual plus of 300 percent
Despite the severe turbulence, he believes the upward trend will remain in tact. “Recently, price setbacks were perceived as a supposedly favorable opportunity to re-enter the market,” said Emden. Bitcoin’s recent soaring is still unparalleled. Since mid-December alone, i.e. in just over three weeks, the price has almost doubled despite the recent setback.
Over the year, the plus amounts to more than 300 percent. There is hardly any other form of investment currently offering such drastic price increases. However, critics warn against exaggerations and a bubble, since such extreme price increases are rarely sustainable.