Bitcoin has already seen significant losses over the past week, and with Monday's decline, its value has plummeted to the levels seen in late February. In mid-March, Bitcoin hit an all-time high of almost $74,000, making the current decline particularly severe.
Bitcoin falls sharply. How much did the most popular cryptocurrency lose? (photo: Google as of 05/08/2024)
Turbulences in the financial markets have an impact on other cryptocurrencies, which also experience declines in value, although less drastic than Bitcoin. Analysts point to several reasons for the current turmoil: uncertainty related to the monetary policy of major central banks, concerns about the stability of the global economy and growing geopolitical tensions. These factors are prompting investors to withdraw from riskier assets, including cryptocurrencies.
Despite the current difficulties, some investors and analysts remain optimistic about Bitcoin's long-term potential. They point to the growing interest in cryptocurrencies among financial institutions and the increasing acceptance of Bitcoin as a means of payment and a store of value. In their opinion, temporary declines in value are a natural part of the market cycle and may constitute a buying opportunity for long-term investors.
As the history of cryptocurrencies shows, such fluctuations are part of their nature, and the market can quickly regain balance.
