Ether Prices Plummet 7% to $2,345.11

Bitcoin Falls Below $40,000 for First Time in 2023

SINGAPORE: Bitcoin fell below $40,000 for the first time in 2023, as the cryptocurrency market continued to slide amid concerns over inflation, interest rates and regulatory scrutiny.

The world's most widely held cryptocurrency fell as low as $39,537.50, according to CoinDesk, before rebounding slightly to trade around $40,400.

The decline marks a significant reversal for bitcoin, which had rallied sharply in the first half of 2023 to reach an all-time high of $64,895.22 in April.

The latest downturn has been driven by a range of factors, including the ongoing impact of the COVID-19 pandemic, which has led to concerns over inflation and interest rates.

Regulatory scrutiny has also played a role, with many governments and financial institutions increasingly focused on the potential risks and benefits of cryptocurrencies like bitcoin.

In recent weeks, the US Treasury Department has proposed new rules to regulate the use of cryptocurrencies in financial transactions, while the European Union has also announced plans to introduce stricter regulations on the sector.

The decline in bitcoin's value has also been mirrored in other major cryptocurrencies, with Ethereum and Litecoin both falling sharply in recent days.

Despite the latest downturn, many experts remain bullish on the long-term prospects for cryptocurrencies, citing their potential to revolutionise the way people think about money and financial transactions.