Bitcoin, the world’s largest digital currency, has undergone a decline in value for the past two days, hitting its lowest point since March 2023. As of May 12, 2023, the value of Bitcoin has dropped to $26,634.90.
Ether, the second-ranked digital asset and an indicator of the top 100 tokens, has also decreased by a similar percentage. The decline in Bitcoin’s value is due to various factors, including increased regulatory scrutiny and concerns over the environmental impact of cryptocurrency mining.
Bitcoin Fluctuation this Wednesday
On Wednesday, the Bitcoin price encountered a momentary surge after the most recent U.S. Consumer Price Index (CPI) figures were released. The figures indicated a 4.9% increase over the past year, which was slightly lower than the previous predictions of 5.0% or 5.1% for the same period.
However, later in the day, the Bitcoin price declined due to speculations that the U.S. government had sold a significant amount of Bitcoin. These rumors were later proved to be false, and the price eventually bounced back to its earlier levels.
Expert’s Point of View
Despite the recent downturn, some experts remain optimistic about the future of cryptocurrencies. They believe that blockchain technology has the potential to transform various industries, including finance and healthcare. However, others urge caution, citing the unpredictability of cryptocurrencies as a risky investment.
Bitcoin, for example, has experienced significant fluctuations in value over the past few years, reaching an all-time high of nearly $65,000 in April 2021 before dropping to its current level. It is unclear whether Bitcoin’s value will continue to decline or if it will rebound in the coming days and weeks. Investors and analysts alike will closely monitor the cryptocurrency market to see how it develops in the future.
Moreover, the correlation between stocks and digital tokens, which was once strong, has almost vanished. This could indicate that digital assets are less affected by macroeconomic factors compared to the broader global markets..