According to the CoinDesk server, Bitcoin lost around eight percent from the previous day around 10:30 CET today and hovered around USD 19,900. Bitcoin already experienced big losses at around $22,000 a day earlier. The second largest cryptocurrency, ether, is selling for around $1,400 today, compared to $1,500 a day earlier.
The market value of all roughly 22,800 cryptoassets fell below the one trillion dollar mark.
The bad mood on the market was caused by turbulence in the American banking sector. According to analysts, they were caused by the fall of the bank focused on cryptocurrencies Silvergate and then also problems at Silicon Valley Bank (SVB), which specializes in venture capital for the technology sector.
In the stock markets, nervousness has also spread to traditional banks. Behind the developments in the financial markets are concerns that a sharp rise in interest rates could lead to a growing number of non-performing loans, which would damage financial institutions, the DPA agency reported.
Digital currencies such as Bitcoin are among particularly risky assets that are often dragged down by bad market sentiment. The prospect of further interest rate hikes in the United States has weighed on the market for a long time. Inflation is falling only slowly, which could prompt the US central bank (Fed) to raise interest rates more significantly.
Higher interest rates generally do not benefit the riskier asset class. Safer securities, such as government bonds, then pay higher interest than in calmer times.
