Price collapses

Bitcoin comes under pressure after recent records

The Bitcoin price fell to its lowest level since the beginning of December on Friday. On the Bitstamp trading platform, the price of the oldest and best-known cryptocurrency fell to 92,118 US dollars (88,618 euros) at midday. In the morning, Bitcoin had still been above 98,000 dollars.

In the current week, Bitcoin has fallen noticeably. On Tuesday, it had risen to a record high of 108,364 US dollars. The financial markets then reacted strongly to interest rate signals from the US Federal Reserve on Wednesday.

The Fed had held out the prospect of fewer interest rate cuts in the coming year. Cryptocurrencies came under noticeable pressure as they do not yield any interest income. Fed Chairman Jerome Powell also said that the central bank itself is not allowed to hold Bitcoin. The central bank is also not calling for a change in the law.

Investors play it safe
The slump continued before the weekend. "A cocktail of uncertainty, consisting of inflation and interest rate concerns, is causing investors to run for the hills," commented analyst Timo Emden. "Bitcoin and co. are in the grip of monetary policy uncertainties." Investors would therefore rather play it safe.

According to a list from the provider Coinmarketcap.com, the market value of Bitcoin currently stands at 1.8 trillion dollars. The market capitalization of all slightly more than 10,000 cryptocurrencies is 3.1 trillion dollars.