"Overheating"

Bitcoin bounces off the 90,000 US dollar mark

Trump actively courted the crypto community during the election campaign.

(Bild: ©peterschreiber.media - stock.adobe.com)

Bitcoin bounced off the 90,000 US dollar (84,499 euro) mark on Tuesday. On the Bitstamp platform, the oldest and best-known cryptocurrency recently fell to 86,412 dollars. Bitcoin had previously reached a record high of 89,993 dollars.

"The risk appetite for Bitcoin and Co. remains high, even if the first signs of overheating are now slowly but surely becoming noticeable," commented Timo Emden, analyst at Emden Research. "Investors are likely to take a breather and the recent euphoria could give way to a more sober approach."

Bitcoin received a strong tailwind from Donald Trump's victory in the US presidential election the previous week. Since then, it has risen significantly. Before the elections, it had cost less than 70,000 dollars. Since the annual low of 38,500 dollars in January, its value has more than doubled.

Trump promises cheap electricity
Trump was the favorite of a majority in the crypto community during the election campaign. Although he made negative comments about Bitcoin during his first presidency, he has recently been actively courting the crypto community. At a major Bitcoin conference in Nashville, Trump promised to leave the crypto market largely unregulated and to provide cheap electricity for calculating new Bitcoin coins ("mining").

Emden also sees a risk in the rising prices. "Regulatory authorities could soon be called onto the scene and start keeping a closer eye on Bitcoin and Co. again," says the expert. "It remains to be seen to what extent Donald Trump will actually loosen the regulatory thumbscrews when he takes office." Emden expects continued high fluctuations.