The US government invests in Bitcoin

Joe Biden arrives and investors are selling off their bitcoins

On Friday, the oldest and most important cyber currency experienced one of its blackest trading days. Bitcoin lost eight percent of its value, slipped below the $ 30,000 mark and headed for its biggest weekly loss since March.

Bitcoin is accelerating its downward slide and for the first time since the beginning of January has slipped below the psychologically important mark of $ 30,000. The oldest and most important cyber currency fell on Friday by up to eight percent to $ 28,765 and headed for the largest weekly loss since the stock market crash in March 2020 with a total minus of around 16 percent. At the beginning of January, the cryptocurrency had reached a record high of just under 42,000 dollars.

“Investors fear the US government will
Regulatory belts too tight and Bitcoin and Co. the air
could take to breathe, "said analyst Timo Emden von Emden
Research. Another reason to sell was, according to stockbrokers
Warning from research house BitMex that some Bitcoin could have two
Times have been spent. These concerns were raised, however
shortly afterwards absent-minded. Investors are still of this
News has been scared, said analyst Kyle Rodda dated
Brokerage IG. "You shouldn't put too much in an immature
Interpreting the market like Bitcoin, but has the momentum
reversed. "

At the end of 2020, a price rally had started, which had driven the Bitcoin to around 42,000 dollars at the beginning of January. That was more than four times as much as at the beginning of October. A tailwind had provided the digital currency with ever broader acceptance. So it was like a kind of accolade that the payment service PayPal enabled its US customers to trade in crypto currencies. But not only PayPal, also large financial investors are showing a greater interest in digital currencies. Last year, for example, the asset manager Fidelity launched a fund that invests in Bitcoin.

US Treasury Secretary Yellen is a Bitcoin critic

However, calls for stricter regulation of crypto currencies are also repeatedly loud. With the new US Treasury Secretary Janet Yellen, a dedicated Bitcoin critic is in the government of US President Joe Biden. The former president of the US Federal Reserve had only warned on Tuesday that cryptocurrencies could be used to finance illegal transactions. This statement was enough to weaken the Bitcoin price further. Concerned investors now fear that the new US government could crack down on cryptocurrencies. In addition, critics see the discontinuity of Bitcoin as evidence that it is unsuitable as a means of payment and a financial investment. And last but not least, generation - so-called mining - with computers consumes a lot of energy and is expensive.