The digital currency market has once again been shaken in its fundamentals in the past week after a long time. Investors have apparently started to take profits after cryptocurrencies have slightly picked up steam since the start of the summer holidays.
Ethereum copies Bitcoin
Bitcoin held virtually steady above the $24,000 mark until the middle of last week. During Monday, it even attacked the 25 thousand mark. But on Thursday, and then especially on Friday, there was an unexpected fall. Bitcoin lost more than 12 percent of its value during these two days and thus managed to defend the $21 thousand mark during the weekend.
Almost like a carbon copy, trading in the second most widely used cryptocurrency, Ethereum, took place over the past week. For most of the week, Ethereum traded around $1,900, only to crash during Friday and drop 14 percent in value. Over the weekend, Ethereum then oscillated around $1,600.
Cryptocurrencies in fear of inflation
The decline in digital currencies is attributed to growing fears of further rate hikes by the US central bank, which is thus likely to continue its relentless campaign against inflation. Inflation in the US is at its highest since 1982.