The crypto market continues to fall and yesterday the value reached the lowest level in eight months. So a large part of this year’s profits have now gone up in smoke. As a result, many investors enter the holidays with a knot in their stomachs.
Today, prices are shooting up again, while investors have to deal with bad news in the form of a historic interest rate increase in Japan. How can this be explained?
Crypto market in free fall
The total market value of all cryptocurrencies fell yesterday to 2.93 trillion dollars (or 2.50 trillion euros). That is the lowest level since April, when the market was in disarray due to US President Donald Trump’s import duties.
After that, the market made a spectacular comeback, but now there is nothing left of it. The Bitcoin (BTC) price is still about 17 percent higher than its low point, but many altcoins are now sold for less money.
Since its peak in early October, when the crypto market was worth around $4.4 trillion, about 33 percent has evaporated. Compared to the beginning of this year, the market is almost 14 percent lower.
With these heavy losses, more and more analysts are openly talking about the beginning of a bear market. This is also because the timing of Bitcoin’s top has actually exactly corresponded with the peaks of the previous bull markets. If history repeats itself, the share price could deteriorate even further in the coming year.
Bitcoin and Ethereum recover after Japanese interest rate rise
Both yesterday and the day before yesterday, the Bitcoin price shot up like a rocket, but the profits were wiped off the table in no time. In both cases the day ended in a deep negative.
Yesterday, Bitcoin peaked at $89,400, but then fell by more than 5 percent to $84,400. Things have now recovered nicely and almost $88,000 has already been deposited for the largest crypto.
This morning you could already read that the Bank of Japan raised interest rates last night to the highest level in thirty years of 0.75 percent. That’s bad news for investors, but bitcoin has risen sharply since then. There is a simple explanation for this.
It had already been a foregone conclusion for a number of weeks that this was what awaited us. It seems to have been one of the reasons for the recent falling share price. Now that the decision is official, that uncertainty disappears and the market dares to breathe again.
Currently, $87,759 is being paid for Bitcoin, which is 1.18 percent more than 24 hours ago.
Ethereum (ETH) has recovered much more strongly and is up 4.01 percent. The largest altcoin is now trading at $2,948.
Source: https://newsbit.nl/cryptomarkt-bereikt-laagste-waarde-in-8-maanden-maar-herstelt-nu-onverwachts/
