The Bitcoin race has today fallen to $ 116,877. This means that a decrease of 1.23 percent is on the signs, and the price has fallen considerably compared to the all-time high of 123,300 dollars. Ethereum also went down with 2.19 percent today and comes in at $ 3,680. Why do the rates fall?
Why is Bitcoin dropping today?
There are a few possible reasons for the price falls. The first is fairly simple, namely that the Bitcoin course has risen quite extremely lately. It is a good opportunity that investors at this level started to achieve some extra profits, and that the Bulls therefore have difficulty breaking through.
Furthermore, it is becoming clear that Donald Trump does not just manage to reduce the long -term interest rates, for example by dismissing Jerome Powell as chairman of the US Central Bank.
In fact, due to his war war, inflation increases, and that pushes the long interest rates up. After all, higher inflation means that investors want a higher interest on capital that they lend.
And higher interest rates on the market ultimately ensure a brake on the economy, and a brake on the amount of capital (liquidity) that ends up in the financial world, and therefore also at Bitcoin.
Furthermore, the market is increasingly realizing that the war war is not over yet, and that the world must now get used to a new reality, with much higher standard taxes.
All in all, that may do something to the Bitcoin investment climate.
Nothing to be wrong yet
Yet there is nothing wrong yet. In a bull market it is completely normal for financial assets to need a breathing break for a possible next step. In this case it is also not a serious decrease.
In the past, Bitcoin regularly experienced corrections of 20-30 percent during bull markets. In that respect this is of course not too bad.
The same applies to Ethereum and XRP, which can still write down an increase of more than 20 percent on a weekly basis.
Source: https://newsbit.nl/bitcoin-en-ethereum-onderuit-bullmarkt-op-pauze/
