The value of Bitcoin continues in free fall. The best known and supposedly most stable cryptocurrency on the market has placed its value below 34,000 dollarswhich represent about 32,000 euros.
The value of Bitcoin has plummeted by 50% in recent months, now placing its price below $34,000
These numbers are very illustrative of the downward trend of Bitcoin, which since the peak it experienced last November, driven by the then imminent launch of the cryptocurrency ETF, has seen its value drop by up to 50%. This crash in the value of Bitcoin coincides with a week of red numbers on stock markets around the world.
The Bitcoin assets account for around a third of the market of cryptocurrencies around the world. It is estimated that the total value of this digital asset exceeds 636,000 million dollars. Ethereum, the second most powerful cryptocurrency in the world, has also seen its value drop. In the last week alone, its price has fallen by up to 10%.
The truth is that these first months of 2022 are being relatively calm for the cryptoactive market. However, previous years were characterized by constant ups and downs in the value of assets. If in recent years the market has been dominated by private investors, is now beginning to become professional and filled with brokers, investment funds and financial entities. This has caused the rhythms of the investment market in crypto assets to keep pace with the cycles of traditional stock markets.
In addition, in the last year Bitcoin has become legal tender in two countries. The first government to take this measure was El Salvador in September 2021. It was a decision that was highly questioned by economists and by other governments.
Even the International Monetary Fund warned that this decision could increase the risk of financial instability throughout the world and favor the activity of criminal groups, who use these assets to launder their illicit income. It was followed by the Central African Republic, which announced two weeks ago that Bitcoin would be its second official currency.
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