Bitcoin’s value continued to fall on Tuesday, briefly diving below $30,000. The digital coin was worth about $31,500 around 06:30 AM UK time.
Cryptocurrencies have been falling for a few days now due to interest rate fears among investors. Higher interest rates are generally unfavourable for equities and other risky investments.
Bitcoin has lost about 6.5 percent in value in the past 24 hours, according to CoinMarketCap, which tracks the prices of digital coins. Over the past seven days, the value plunged more than 18 percent to its lowest level since July last year. At the beginning of the year, a bitcoin was worth almost $ 48,000. Ether, the second-largest digital currency by market value, lost nearly 17 percent in the past week.
Interest rate fears that have gripped the financial markets for some time also affect the value of cryptocurrencies.
In a news conference last week, US Federal Reserve Chairman Jerome Powell assured that policymakers at the central bank would do whatever it takes to curb rising inflation. However, he also emphasized “acting quickly”, which investors interpret as an announcement that interest rates could be raised further soon.