Bitcoin only worth 48,000 euros – this is the reason for the price drop

Emden

• The Bitcoin price falls to $51,600, the lowest level since February.
• Analyst Timo Emden of Emden-Research speaks of a “cocktail of uncertainty” that is weighing on Bitcoin.
• Other cryptocurrencies such as Ether are also under selling pressure, with the market capitalization of all cryptocurrencies falling by about 14 percent to $1.85 trillion.

Bitcoin continues to lose ground with a generally gloomy mood on the financial markets. The price of the oldest and best-known cryptocurrency fell to $51,600 on Monday morning on the Bitstamp trading platform, reaching its lowest level since February.

Since Friday evening, Bitcoin has lost about $10,000 in value. The last time a similarly sharp drop in price was seen was in June 2022. The second most important cryptocurrency, Ether, was also hit hard.

Current price: Bitcoin

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Bitcoin had already fallen sharply last week. Analyst Timo Emden from Emden-Research spoke of a “cocktail of uncertainty” that is currently weighing on Bitcoin.

“The renewed fears of recession in the USA in particular are catching investors off guard,” said Emden. Recently, there have been several disappointing economic data releases in the USA. In particular, an unexpectedly weak labor market report from the US government caused concern. In July, unemployment in the world's largest economy rose to its highest level in almost three years.

Turbulence affects other cryptocurrencies

In addition to Bitcoin, other cryptocurrencies were also under strong selling pressure at the beginning of the week. The price of Ether fell by around 15 percent to $2,340. This also represents a setback for the newly launched Ethereum ETFs, which were intended to attract new investors in the USA. With the recent price losses, the market capitalization of all cryptocurrencies has decreased significantly. It fell by around 14 percent to $1.85 trillion. Bitcoin's share was recently estimated at around 56 percent.

A week ago, Bitcoin had risen to just under $70,000. Statements by Republican presidential candidate Donald Trump had pushed the cryptocurrency toward record highs, last reached in March at just under $74,000. Trump had promised to make the US the “crypto capital of the planet and the Bitcoin superpower” if he returned to the White House after the election in November.

The price development over the past week shows once again how susceptible to fluctuations trading in cryptocurrencies is. There are therefore repeated warnings about possible large price losses with Bitcoin and Co.

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