Updates: 22.01.2021 08:02
Singapore – The value of the digital currency bitcoin has fallen below USD 30,000 (CZK 644,000) today and is heading for the largest weekly decline since September. It thus prolonged the decline from the record high it reached two weeks ago, due to concerns about possible regulation and the previous sharp growth, the Reuters agency wrote.
In Asian trading, bitcoin fell more than five percent to a nearly three-week low of $ 28,800, later returning above $ 30,000. It is losing about 11 percent this week, the highest loss since September.
IG Markets analyst Kyle Rodda said it was difficult to find a logical explanation for the development of an asset that is as inefficient and immature as bitcoin. However, according to him, the current development is definitely a turnaround. “The herd must have looked at it and thought it looked scary and scary and now was the time to sell,” he said. Some analysts also warn that a steady decline below 30,000 could mean further losses.
Bitcoin is now trading about 20 percent below a record high of $ 42,000, which it rose two weeks ago. It is losing ground due to growing concerns that it is one of many price bubbles and that regulators are increasingly focusing on cryptocurrencies.
During her hearing in the Senate on Tuesday, Janet Yellen, the new US Treasury Secretary, expressed concern that cryptocurrencies could be used to fund illegal activities. Last week, Christine Lagarde, President of the European Central Bank, called for global regulation of bitcoin.
The second largest currency, ethereum, first dropped to a weekly low today. Later, however, it rose by six percent and traded around $ 1,177.
Source: České noviny – hlavní události by www.ceskenoviny.cz.
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