Bitcoin below $ 42,500 – lowest level since early August
The losses in the cryptocurrency market continued to widen on Monday lunchtime. A unit of Bitcoin now costs less than $ 42,500, which is the lowest it has been since the beginning of August. The marked low on the day Bitcoin was introduced in El Salvador at just under $ 43,000 was even fallen below.
The shock waves on the capital markets triggered by the Chinese real estate company “Evergrande” do not leave crypto investors indifferent either. The fact that the Chinese government might let the giant hit the wall is fueling fears of a real estate crisis on both sides of the Atlantic. Evergrande is on the brink of bankruptcy with over $ 300 billion.
Against this background, investors are trying to park their belongings in the US dollar, a constellation that in turn can make cryptocurrencies less attractive.
Investors are in “risk-off mode”, are turning their backs on risky asset classes and are still playing it safe. The principle of caution prevails. A significant slide below the $ 43,000 mark could create new turbulence.
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Bitcoin course: it could go on like this now
For fear of further losses, investors could now continue to cash in part of their profits and thus tend to profit-taking. Overall, from a fundamental as well as a technical point of view, at least a short-term perspective, the situation is confusing. Only when the situation around “Evergrande” should calm down, investors in the cryptocurrency market could become active again. The general uncertainty in the stock markets weighs too heavily on Bitcoin and Co. In addition, the US Federal Reserve (Fed) meeting on Monday could soon cast its shadow. It remains important that the Fed does not use the word “tapering”, which would mean a meltdown of the existing $ 120 billion bond purchases. Since Bitcoin and Co are seen in many places as a supposed hedge and diversification instrument, digital currencies could come under pressure against this background.
The most recent recovery movement is thus on feet of clay. The price is currently again below the important 200-day average. For a short time, the stock exchange lights jumped to red.
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