All-Time Low Since September: Bitcoin Falls Below $40K Forcing Investors To Make A Move!
Just this week, Bitcoin's price fell to its lowest value since September. Due to this, investors are now torn between either holding or selling their assets regarding cryptocurrency.
Falling as much as 6% to enter a low of $39,771.91, Bitcoin has worried traders. Furthermore, Ethereum, currently the second-largest cryptocurrency by market cap, also lowered as Ethereum fell to $3,090.67 as of writing this article.
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Bitcoin and Ethereum aren't the only ones that saw a decline this week as cryptocurrency, in general, went down. The 10-year U.S. Treasury yield went up to start 2022. Thus, investors have been trying to invest in more regular and value names.
Previously in November, Bitcoin was able to reach a record high approximate of $69,000 after an inflation reading that showed the biggest jump in consumer prices in 30 years during the time. Due to this reading, investors were forced to jump into inflation hedges which include cryptocurrency and gold.
Due to the fact that cryptocurrency such as Bitcoin has traded side-by-side with equities, most investors are now even more split on whether cryptocurrency can be a proper inflation hedge, which is an investment that is considered to protect the decreased purchasing power of a currency.
Additionally, Cryptocurrency prices have declined since November, with bitcoin seeing a 40% decline. Bitcoin was able to add to its losses in the previous week after the Federal Reserve showed its intentions to start reducing its balance sheet, adding to the preparation of investors for its tapering of bonds and raising interest rates.
Bitcoin, Ethereum, and other Cryptocurrency or crypto stocks also saw a decline in the recent Monday as the coinbase saw a fall of around 3.2%. Due to this, the Crypto banks Silvergate lost 4%, and Signature lost 3%.
