The value of bitcoin fell further on Wednesday to below the $ 60,000 mark. The best-known and largest cryptocurrency in the world already had the worst month in April (-15%) since the collapse of the crypto exchange FTX in November 2022. Today the ‘bears’ are taking it even further and the price has fallen below 54,000 euros, or $57,000.
Yet there doesn’t seem to be much to worry about for long-term investors of ‘digital gold’. The price is still far above the rate on January 1, 2023 ($16,400) and January 1, 2024 ($42,500).
The fall in prices is partly caused by the prospect that American interest rates will remain high for longer. The market now estimates that the Federal Reserve’s first interest rate cut will probably not take place until September 18 or November 7, while not long ago it was assumed that the US central bank would implement this step in the spring.
Investors in digital currencies hoped that inflation in the world’s largest economy would have cooled sufficiently by now. However, the US central bank, which will meet later in the day to discuss interest rate policy, has already announced that inflation is still too high to lower interest rates. Higher interest rates are generally negative for investments in digital coins, which do not earn interest.
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