Bitcoin hits lowest since 2021. Here's why
1/5
US monetary policy, surging inflation
Bitcoin has slumped below $30,000 for the first time since July 2021, as cryptocurrencies track sinking markets with investors spooked by aggressive US monetary tightening and surging inflation.
2/5
As low as $29,764
The world's largest cryptocurrency by market value fell as low as $29,764 in Tuesday trade. Later it recovered to above $30,000.
3/5
Bitcoin value halves since Nov
Bitcoin's value has more than halved since a November surge that saw the token hit a record of nearly $69,000.
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4/5
Viewed as a riskier asset
While crypto enthusiasts view bitcoin as a hedge against inflation, an influx of more traditional investors tend to view it as a riskier asset. They have been offloading bitcoin and other digital tokens along with other volatile assets like tech stocks. This is as the US Federal Reserve moves to hike interest rates to tackle decades-high inflation.
5/5
Concerns about growth
Some market analysts point out that while the token's long-term fundamentals have not changed in months, concerns about growth and a possible recession are creating a difficult environment for cryptos.