Business & Economy

Bitcoin dives 7%, sinking to18-month low

Madrid, Jun 13 (EFE).- Bitcoin, the world’s largest cryptocurrency, tumbled by more than 7% on Monday and hit its lowest record since December 2020 after remaining stagnant at $30,000 for the last month.

According to Bloomberg data, bitcoin lost 7.27% and traded at $25,358.93 as European markets opened Monday.

The value of the crypto coin has dipped by 45.26% this year, and by 63.24% in total after achieving record highs in November 2021 when it reached $69,000.

Cryptocurrencies have been affected by sudden hikes in interest rates carried out by various central banks that have also deployed contractionary monetary policies in a bid to rein in inflation.

Since the United States Federal Reserve announced on May 4 its latest rise in interest rates, Bitcoin has lost 36.28% of its value.

Bitcoin had remained stable at $30,000 since mid-May, days before it plummeted to its lowest level since December 2020 (at around $25,000) after the sharp fall of terraUSD, a so-called stablecoin that was pegged to the dollar through a complex algorithm tied to Luna, an unbacked cryptocurrency.

Ether, the world’s second-largest cryptocurrency, also tumbled by 9.71% on Monday, dropping to $1,332.515. EFE


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