Bitcoin declines, affected by the strength of the US economy
The digital currency "Bitcoin" declined significantly today, Wednesday; which experts attributed to the strength of the US economy, which reduced expectations of reducing interest rates in the United States.
By 10:50 am GMT today, "Bitcoin" fell 5.85% to record $95,720, a level lower than the $102,413 it achieved last Monday, and lower than the historical high of more than $106,000 in mid-December.
Reducing expectations
Timo Emden, an analyst at "Emden Research", explained that the strength of the US economy is pushing investors to reduce their expectations for further cuts by the Federal Reserve "the US Central Bank" interest rates before.
He added that these trends affect the attractiveness of high-risk, non-return-generating investments such as "Bitcoin".
Despite these headwinds in monetary policy, things may change with Donald Trump, a supporter of digital currencies, taking office as the new president of the United States on January 20.
In turn, John Blassard of Mirabaud Bank warned in an analytical note that Bitcoin now carries very high bubble risks.