Bitcoin’s decline continues, with price slipping to six-month low

Bitcoin continued to lose considerable ground amid a generally gloomy mood on the financial markets on Monday.The price of the oldest and best-known cryptocurrency plummeted to US$51,600 on the Bitstamp trading platform on Monday morning, reaching its lowest level since February, before rallying slightly, dpa reported.

Bitcoin has lost around US$10,000 in value since Friday. The last time there was a comparably sharp price slump was in June 2022. The fall continues a trend that began last week.

German analyst Timo Emden, from Emden Research, spoke of a “cocktail of uncertainty” that is currently weighing on Bitcoin. “In particular, the newly sparked fears of recession in the US are catching investors on the wrong foot,” he said.

 There have been several disappointing economic data releases in the U.S. in recent weeks. In particular, an unexpectedly weak labour market report from the US government caused concern. In July, unemployment in the world’s largest economy rose to its highest level for almost three years.

In addition to Bitcoin, other cryptocurrencies also came under heavy selling pressure at the start of the week. The price of Ether slumped by around 15 percent to US$2,340. This represents a setback for the newly launched Ethereum ETFs, which were intended to attract new investors in the U.S. The recent price losses have significantly reduced the market capitalisation of all cryptocurrencies. It fell by around 14 percent to US$1.85 trillion. Bitcoin’s share was recently put at around 56 percent. The price performance over the past week shows once again volatility in cryptocurrencies trading.