Bitcoin hits a new low

Tokyo – Bitcoin slumped below $30 000 (about R480 000) for the first time since July 2021 yesterday as cryptocurrencies track sinking markets, with investors spooked by aggressive US monetary tightening and surging inflation.

The world’s largest cryptocurrency by market value fell as low as $29 764 in yesterday’s trade, before recovering above $30 000, extending a recent collapse in price as investors desert assets viewed as risky.

Bitcoin’s value has more than halved since a November surge that saw the token hit a record of nearly $69 000.

While crypto enthusiasts view bitcoin as a hedge against inflation, an influx of more traditional investors tend to view it as a riskier asset.

They have been offloading bitcoin and other digital tokens along with volatile assets like tech stocks as the US Federal Reserve moves to hike interest rates.

“Bitcoin is breaking below some key technical levels as the never-ending selloff on Wall Street continues,” said Edward Moya, senior market analyst for the Americas at Oanda.

“Many who got in last year are now losing money on their investment.” –