Cryptocurrencies are recovering
Bitcoin costs more than 20,000 dollars again
Crypto market sentiment continued to improve at the start of the year after a crash last year. Bitcoin, the oldest and best-known digital currency, is again trading above the $20,000 mark.
The hope of less drastic interest rate hikes by the central banks have also given impetus to cryptocurrencies. (archive image)
Other crypto values such as Ether or Tether have recently recovered somewhat from their sometimes considerable price losses in 2022. The market value of all almost 22,300 digital systems is again almost one trillion dollars.
After recovering last week, bitcoin rose to over $21,000 over the weekend. On the night of Monday, a peak of $21,433 was marked on the Bitfinex trading platform. This is the highest level since the end of October.
Ether, the second-largest digital currency by market value, has to be paid again for more than $1,500 – more than it has been since the beginning of November. Recently, a bitcoin cost $20,800.
The courses of many cryptocurrencies had collapsed in the past year. Bitcoin fell from just over $46,000 to less than $16,000. An important reason was the turnaround in interest rates by many central banks, which drove investors out of risky assets such as digital currencies. A second reason was the crash of the major crypto exchange FTX, which dealt a severe blow to the entire industry. Distrust of crypto companies rose rapidly.
The situation has eased somewhat since the beginning of the year. “It is the hope of slowing the pace of the US Federal Reserve’s interest rate hike cycle that has obviously awakened risk appetite,” commented crypto expert Timo Emden – and at the same time warned: “The current price rally is impressive and scary at the same time.
Private investors in particular could now come up with the idea of chasing the rising prices.” Crypto assets like Bitcoin are considered extremely volatile. Regulators regularly warn against getting involved, especially by small investors.
(SDA)