Bitcoin value drops to lowest level in months

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Bitcoin’s value fell again on Monday and is at its lowest level since July last year. The digital currency was worth less than 33,000 dollars (more than 31,000 euros) on Monday afternoon around 1:30 p.m. Dutch time. At the start of the year, the value was still at 48,000 dollars (more than 45,000 euros).

Bitcoin has lost more than 5% of its value in the past 24 hours, according to CoinMarketCap, which tracks digital coin prices. In the past seven days, the value has fallen by 15%.

The drop comes at a time when investors have long feared rate hikes by the US central bank, the Federal Reserve (Fed). Higher interest rates are generally unfavorable to stocks and other risky investments.

At a press conference last week, Fed Chairman Jerome Powell assured bank policymakers would do whatever it takes to rein in rising inflation. He insisted on acting “quickly”, which is interpreted by investors as an announcement that interest rates can be raised even more quickly. Last week, the Fed raised interest rates by half a percentage point, after which the New York stock market fell the same day.

In early March, the value of bitcoin, like that of many other cryptocurrencies, rose after falling sharply earlier in the year due to the Russian invasion of Ukraine. The value of the coin then amounted to more than 41,000 dollars, or approximately 37,500 euros.

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