The popular cryptocurrency, Bitcoin, has again suffered a huge decline in value. One unit of currency, at the time of writing the article, is worth approximately PLN 141,181.94. Five days ago, you had to pay PLN 172,506.65 for one Bitcoin.
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Although the currency had the biggest fall on Saturday, January 22, when its value was around 137,000. PLN per unit, the current trend is not optimistic. Bitcoin slightly bounces upwards, including small drops, but given its history, you should take into account the possibility of another significant decline in value.
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The sound of a balloon bursting
According to Reuters Agency, the currency is experiencing sharp price swings as investors’ risk appetite has declined amid concerns over inflation and anticipation of a more aggressive pace of interest rate hikes from the US Federal Reserve. The situation is additionally not improved by the global trend of rising inflation, which may also hinder interested persons from outside the United States.
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This trend also affected other cryptocurrencies. Ethereum, the second most popular digital currency, has lost almost half of its value. Even in November, it was worth over 19 thousand. zlotys. Its current value is at the level of PLN 9,726.98 per one unit Etheru.
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If we take into account the numerous problems that the world is currently struggling with, the decline in the cryptocurrency market should come as no surprise. It has long been known that digital currencies are extremely green and energy-intensive. So, observing the global rising prices of electricity or numerous bans and regulations on cryptocurrencies introduced by subsequent countries, the decline in Bitcoin should not come as a surprise.
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A separate question is whether new investors will now enter the game who will take the risk of buying cryptocurrencies in such a precarious situation. However, there is a great risk that the decline in the value of digital currencies is the first sound of an over-inflated balloon bursting. This, in turn, would mean that both Bitcoin and less popular projects such as Ethereum or Litecoin would experience an even greater decline in value.
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