Digital currency: Crypto market stabilizes after weekend slump

The cryptocurrency market recovered somewhat on Monday from its weekend slump.

Bitcoin, as the largest digital system on the market, cost around 20,000 US dollars (a good 19,014 euros) in the morning. On Saturday, it fell to its lowest level since late 2020 at around $17,600, after having cost well over $20,000 before the weekend.

Other cryptocurrencies also recovered at the start of the week. The number two in the market, ether, again cost more than $1000. Over the weekend, it had fallen to around $880. That was the lowest level since the beginning of 2021. The market value of all around 19,900 internet currencies was $878 billion on Monday morning. The fall 2021 record of nearly $3 trillion is a long way off. In the current year, many digital stocks have had to accept high, often double-digit percentage losses.

Mixed reasons for price collapse

At the weekend, the value of many digital systems had repeatedly fallen significantly. The reason is a mixture of adverse economic conditions and negative news from the crypto industry. Risky investments such as Bitcoin & Co are suffering greatly from the rising interest rates worldwide, which make financial investments without ongoing income such as Bitcoin appear less lucrative. The reason for the rise in interest rates is high inflation, which many central banks are countering by raising interest rates.

The crypto scene does not come to rest either. The problems of the lender Celsius Network, which has suspended withdrawals and transfers, have recently caused a stir. A few weeks earlier, a price slump in the digital value TerraUSD had unsettled. This is a so-called stablecoin, which is actually designed as a particularly stable cryptocurrency.