Cryptocurrencies continue to fall, bitcoin price drops to $ 34,000

Cryptocurrencies continue to fall sharply. The price of the largest and most famous digital currency, bitcoin, fell to almost $ 34,000 (€ 29,961) on Saturday and is about 50% below its record high in November 2021.

The price of bitcoin reached $ 34,042. He later erased some of the losses and on Saturday around noon Central European Time sold at minus 8.75% (in 24 hours) for $ 35,401.94. Other crypto assets weakened significantly. The second largest digital currency, ether, traded around $ 2,440.

The cryptocurrencies followed Friday’s (January 21) negative trend from Wall Street. The main reason is the expectation that the US Federal Reserve (Fed) will start tightening monetary policy in the fight against inflation, with the rate-raising cycle likely to start in March. Investors are therefore getting rid of risky assets, including stocks and cryptocurrencies.

Cryptocurrencies have been weakening since November, when their total market capitalization has fallen by more than $ 1 trillion. Bitcoin has lost more than 50% since November, reaching a record high of $ 69,000, and its market capitalization has fallen by more than $ 600 billion.

(1 EUR = 1.1348 USD)

(TASR)