January has been a tough month for bitcoin enthusiasts. The digital currency has halved in value since its peak in November, and got off to its worst start in a year since the cryptocurrency took off completely in 2018.
The cryptocurrency bitcoin has its worst start month since 2018. It reports, among other things Bloomberg.
The digital currency plunged all the way down to $ 33,000 in January, from a record high of $ 69,000 less than three months ago.
Other cryptocurrencies have also suffered. Ethereum has fallen by around 30 percent since December.
The fall comes, among other things, after the US Federal Reserve has recently changed its mind about when interest rate hikes should come. In a report from the last interest rate meeting, the central bank wrote that there is a chance that the interest rate hikes may come even earlier.
On Tuesday morning, the digital currency bitcoin traded for around $ 38,000, according to Coinmarketcap.com.
The annual survey by Natixis Investment Managers showed earlier this month that managers believe cryptocurrency will make the biggest fall in 2022.
El Salvador defends crypto
In September, El Salvador became the first country in the world to accept bitcoin as a legal tender, in line with the US dollar.
On Tuesday last week, the International Monetary Fund (IMF) warned that large exchange rate fluctuations entail great risk when using the cryptocurrency.
That does not stop El Salvador’s government from defending the decision to make bitcoin a legal tender.
– No multilateral body can force anyone to do anything. States are sovereign states and make sovereign decisions about their own policies, Finance Minister Alejandro Zelaya said on Monday, according to NTB.
At the time, a bitcoin cost around $ 44,000.
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