The popular Bitcoin cryptocurrency has once again suffered a significant drop in its value. One unit of the currency, at the time of writing, is approximately equivalent to 141,181.94 Polish zlotys. Five days ago, you had to pay PLN 17,2506.65 for a bitcoin.
Although the coin recorded the biggest drop on Saturday, January 22, when it was worth around PLN 137,000 per unit, the current trend is not optimistic. Bitcoin bounces around a bit more, even on small dips, but given its track record, you should consider the possibility of another significant drop in value.
balloon explosion sound
according to ReutersThe currency is seeing sharp price swings as investor risk appetite wanes amid inflation concerns and a steeper pace of interest rate hikes by the US Federal Reserve is expected. In addition, the situation has not improved due to the worldwide trend of rising inflation, which may also hinder interested persons from outside the United States.
This trend has also affected other cryptocurrencies. Ethereum, the second most popular digital currency, has lost almost half of its value. Even in November, its value was more than 19 thousand. zloty. Its current value is PLN 9726.98 for 1 unit ether.
Given the many problems the world is currently experiencing, the downturn in the cryptocurrency market should come as no surprise. It has long been known that digital currencies are very environmentally friendly and consume a lot of energy. Therefore, considering the rise in global electricity prices or the many crypto bans and regulations introduced by subsequent countries, bitcoin's decline should come as no surprise.
A separate question is whether new investors will jump into the game now and risk buying crypto in such a risky situation. However, there is a significant risk that the drop in the value of cryptocurrencies is the first sound of an exaggerated balloon burst. This, in turn, means that both Bitcoin and lesser-known projects like Ethereum or Litecoin will experience an even bigger drop in value.
