On Thursday afternoon, the Bitcoin price reached a record high of $73,794 (€67,750). By midday on Friday, the price had fallen to $67,547 (around 62,000 euros). picture alliance / abaca | Durand Thibaut/ABACA
The Bitcoin price fell to $65,569 (around €60,200), its lowest level since the beginning of March.
According to Timo Emden from Emden Research, investors are cashing in their profits and forcing consolidation at a high level.
High demand from ETF providers and the prospect of a slowdown in Bitcoin growth in April are key reasons for the recent record highs.
The Bitcoin price fell significantly on Friday. On the Bitstamp trading platform it temporarily fell to $65,569 (around €60,200), its lowest level since the beginning of March. At midday the price of one Bitcoin was 67,547 dollars (around 62,000 euros). The day before it had reached a record high of 73,794 dollars (67,750 euros).
Timo Emden from Emden Research says, “Investors are now trying to cash in on some of their profits.” He thinks that “the overheated prices are forcing an exit and possibly a first major consolidation on still high territory.” The price is below the old record high from November 2021, which is likely to put a damper on the market, says Emden. In addition, the US producer prices published on Thursday would have dampened interest rate cut fantasies in the USA.
Read too
My portfolio increased by 30,000 euros in one year, also thanks to Bitcoin – this is how I protect myself from a crash
A year ago the Bitcoin price was at $20,000 – it is currently around $65,500 despite the slump
The Bitcoin price has reached one record high after another in the past few days. A key reason for this is the high demand from several ETF providers who have been able to offer their new Bitcoin funds in the USA since January. This allows investors to invest in the digital currency without having to buy it directly. Added to this is the prospect of a slowdown in Bitcoin growth as the reward for verifying Bitcoin transactions will be halved in April.
The impressive Bitcoin rally has been frequently accompanied by setbacks recently. However, this is typical for cryptocurrencies, which are considered particularly risky investments due to their sometimes strong price fluctuations. At the beginning of the year, the Bitcoin price was around 42,000 dollars (38,500 euros), a year ago it was just over 20,000 dollars (18,400 euros).
AA/dpa