Bitcoin falls below the $ 40,000 threshold





Photo credit © Reuters

(Boursier.com) – Victim of the risk aversion that has gripped the financial markets, the bitcoin fell below $ 40,000 on Monday for the first time since late September. The price of bitcoin briefly fell below $ 40,000 in the morning, before picking up a bit to price around $ 41,500 Monday night (-2% over 24 hours). The cryptocurrency has now given up about 55% of its value since the beginning of November, when it had approached $ 68,000 …

The bearish trend in bitcoin in recent weeks, as the prospect of a Fed hike in key rates becomes clearer for 2022, has challenged the hypothesis that cryptocurrency could serve as a safe haven. Higher interest rates, on the other hand, are likely to discourage speculation, which is often done with borrowed capital.

The Fed’s ultra-accommodating monetary policy since the 2020 Covid crisis has thus provided torrents of easy money, which should gradually dry up from 2022, weighing on market segments such as “cryptos” and “same stocks”.

Crypto and blockchain values ​​linked to the volatility of bitcoin

On Wall Street, securities linked to cryptocurrencies and the blockchain are also subject to the vagaries of bitcoin. They had peaked in April and November 2021, when bitcoin prices soared, before experiencing a tumble in recent weeks.

So the mobile broker Robinhood (-4% Monday), very popular with the new generation of individual investors, has dropped 60% from its introductory price of $ 38 last July, and the “crypto” trading platform Coinbase (-4%), introduced at $ 250 in April, jumped to almost $ 360, before falling back to around $ 222 (-38%). Marathon Digital Holdings (-28% over 3 months) and Riot Blockchain (-21% over three months) are also moving in bearish ground.


© 2022 Boursier.com





Source link -87