The price of Bitcoin has dropped below $ 20,000 as the crypto selloff deepens

Bitcoin is priced below $ 20,000 and is widely monitored by cryptocurrency enthusiasts. A brutal sale in crypto Showed no signs of decline.

Bitcoin was down $ 17,601.58 and was below $ 20,000 on Saturday afternoon, down about 15% from the 5pm ET silver price, according to CoinDesk. It Has lost 74% of its value Maximum in November.

Concerns about the Federal Reserve Measures to control higher inflation than expected Has pushed both stocks and cryptocurrencies into a bear market. Big names in the industry including

Coinbase Global Inc.,

The largest cryptocurrency exchange in the United States, Have recently announced job cuts.

“Breaking the $ 20,000 price level of Bitcoin is a long way off, considering the distrust we have in the market,” said Naeem Aslam, market analyst at AvaTrade. He said the fall of the Staplecoin Terra US dollar in May would continue to ripple, and that it would cause depression.

The $ 20,000 level was of no particular importance, but the price fell below $ 19,783, according to Coinbase, the previous highest watermark hit in 2017. Bitcoin bulls have long believed that cryptocurrency has entered a new phase of development and acceptance and that it will not fall below that 2017 level.

Yuya Hasekawa, a market analyst at Japanese crypto exchange Bitbank Inc., said: “It will be very painful for a lot of investors.

For Wayne Sharp, a retired investment consultant in Columbus, Ohio, the Cratering crypto market came as no surprise. He bought Bitcoin worth about $ 10,000 in 2020 and has been sitting on it with no plans to sell or buy more since then. “I’ve seen a lot of cycles. I’ve been watching this for 45 years,” she said. “Humans make the same mistakes over and over again.”

Ether, another major cryptocurrency, fell below $ 1,000 on Saturday, with CoinDesk trading the lowest level since January 2021 at $ 880.93.

Bitcoin Slide from its record peak Contributed $ 67,802 in November Approximately $ 2 trillion yards In the wide market. Crypto’s total market capitalization rose to nearly $ 3 trillion in November, from $ 834 billion on Saturday — the lowest since January 2021, according to data provider CoinMarketCap.

Bitcoin traded at $ 30,000 for most of May, then plummeted again in June. A new inflation shock And concerns about rising US interest rates. Investors are dropping risky assets such as cryptocurrencies and technology stocks.

Individual investors have received margin calls, and data provider CoinGlass says $ 460 million of networks pledged by about 132,000 retailers have been dismantled in the past 24 hours. That compares to $ 1 billion earlier this week.

The number of so-called “crypto winter” crypto companies is growing. Cryptocurrency lender Babel Finance told customers on Friday that it was Discontinue withdrawal and withdrawal from all productsCelsius Network LLC, one of the largest crypto lenders, citing “extraordinary liquidity pressures” Users are not allowed to withdraw money Citing extreme market conditions, approximately one week.

Cryptocurrency-Focused Hedge Fund is owned by Three Arrows Capital Limited Appointed legal and financial advisers The company’s founders told The Wall Street Journal to help develop a solution for its investors and lenders after it suffered huge losses due to a wide market sale in digital assets.

According to Ryan Xia, an economist at crypto investment firm Trax, available capital is often referred to as cash flow, which boosts sales. Unlike traditional markets, “there is no central bank for action and interview, the process has to play,” he said.

The last two years have contributed to the rise of cryptocurrency valuations Big name investments From companies such as

Tesla Inc.

Also the period of low interest rates during epidemics encouraged people who were paralyzed at home to buy risky assets in the hope of getting higher returns.

The interest rate increases Explosions in some crypto projects have now been passed by the central bank as they spread in the environment. Terroyust, also known as Staplecoin Terroyust, broke free from its $ 1 pound last month following severe selling pressure, leaving its original sister cryptocurrency Luna. Now almost useless. As its developers sought to protect TerraUSD’s peck, they sold Bitcoin reserves and weighed its price and other assets.

Crypto investors have recently been concerned about the emergence of cryptocurrency ether, which is locked up until the Ethereum network becomes a low-energy model. The so-called lido-staked ether has recently been traded at a discount to ether.

“Crypto has enough problems. It does not need a macro, ”said Noel Acheson, head of market intelligence at Crypto Lender Genesis Global Trading, citing rising interest rates and inflation concerns.

Write to Elaine U at [email protected] and Caitlin Astroff at [email protected]

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