Why Bitcoin fell 4.5% on Friday

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What happened

The value of cryptocurrency giant Bitcoin (CRYPTO: BTC) fell 4.5% in the past 24 hours and was down 1.3% as of 3:20 p.m. EST on Friday. The token is down about 7.2% since hitting an all-time high of $ 69,000 on Wednesday.

So what

The biggest news in the Bitcoin world is that the city of Miami is planning to distribute Bitcoin free to residents through profits from its Miami Coin. The coin generated $ 21 million in profits for the city, and Mayor Francis Suarez said the city would return that money to citizens through cryptocurrency wallets.

Image source: Getty Images.

It looks like handing out Bitcoin would be good news for the price of Bitcoin itself, but that’s not the market reaction. Maybe because there are a number of hurdles (like how to track wallets and what information people will need to provide to be eligible for payments), but for now Miami seems very bullish on cryptocurrency. and Bitcoin itself.

Now what

After hitting all-time highs after the infrastructure bill passed earlier this month, and as investors continue to worry about inflation, it’s no surprise to see Bitcoin take a pause. Keep in mind that token prices have increased 11.4% over the past month and 293% over the past year, so the trend is still higher. We don’t know how long the uptrend will last, but with volatility a staple for Bitcoin, it’s no surprise to see a pullback to end the week.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a premium Motley Fool consulting service. Were motley! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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