Bitcoin cools sharply with drop to well below $40,000 | Financial

On crypto platform Coindesk, bitcoin faced a loss of 2.8% at a stand of $37,615 around 8 a.m. (Dutch time). On Thursday, the $40,000 mark was passed upwards.

The fact that the US central bank plans to raise interest rates in the US again may play a role in the diminished enthusiasm among crypto investors. This proposed tightening of monetary policy is affecting riskier investments, such as cryptocurrencies.

Back support

At the beginning of this week, bitcoin received a lot of support from Tesla boss Elon Musk. He emphasized that he would embrace the crypto again if it was produced with less oil, coal and other fossil fuels.

Earlier this month, Musk caused considerable damage to bitcoin. In addition, he indicated in a tweet that his love for the digital currency would be over because of the harmful environmental effects.

At the end of January, Musk launched another unprecedented boom for bitcoin. At the time, he indicated that he was investing $1.5 billion in the digital currency and that his electric cars would also be paid for in the crypto currency.

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