Bitcoin falls below $ 40,000 for the first time since late September

The bitcoin is far from its historical peak of 66,000 US dollars and is due to policies against inflation in EE. UU.


The price of bitcoin  briefly fell below $ 40,000 on Monday, the lowest level since late September, as investors’ risk appetite suffered on the prospect of a tightening of Federal Reserve policy. (Fed) of the United States.

Shortly after touching a low of $ 39,663.18, the cryptocurrency recovered towards 14h45 GMT to $ 41,198, representing a drop of 2.6%.

In October it reached an all-time high of more than $ 66,000.

However, so far this year it has lost 12% of its value.

Why is the value of bitcoin falling?

The first cryptocurrency had taken advantage of an increase in liquidity in the markets at the end of 2020 and in 2021, due to the ultra-flexible monetary policy of the United States Federal Reserve ( Fed ).

But now, the prospect of a tightening of that policy to counteract inflation is affecting bitcoin , as it also affects world markets.

“Shares in tech groups, which are especially sensitive to rate hikes, are under pressure,” said Fiona Cincotta, analyst at City Index.

Some investors also consider that one of the qualities of bitcoin , its limited supply by the algorithm that regulates its issuance, makes it a safe haven against inflation, a kind of digital gold, which would be less attractive if the Fed takes action.

This Friday, the United States will publish data on its inflation.

“If the data published exceed the expectations of the market, we can expect further sales of the bitcoin, as investors calculated that it is the stronger inflation, faster will have to act the Fed , ” said Marcos Sotiriou, an analyst at brokerage criptomonedas GlobalBlock.