Bitcoin Dives Below $20,000

Bitcoin Dropped Below $20,000, Its Lowest Level Since December 2020

Bitcoin fell below $20,000, its lowest level since December 2020.

Bitcoin slumped below $20,000 on Saturday, losing nine percent from the previous day to drop to $18,740, its lowest level since December 13, 2020.

With investors increasingly wary of risk, the world’s most popular cryptocurrencies asset has lost more than 72 percent of its value since it hit a high of $68,991 on November 10, 2021.

After falling to $18,740 on Saturday, Bitcoin rose to $18,941 at 1550 GMT, down eight percent from Friday.

Other major digital currencies also fell on Saturday, including ether, which lost nearly 10 percent of its value.

Global stock markets plunged this week on fears that inflationary rate hikes by the US Federal Reserve and other central banks could trigger a recession.

Cryptocurrencies have paid the biggest price.

The value of the global crypto market fell below the token mark of $1 trillion Monday, after hitting $3 trillion last November.

Bitcoin’s fall has been accelerated by the suspension of withdrawals by two cryptocurrency platforms.

The Celsius Network said it was “pausing all withdrawals, swaps and transfers between accounts” due to “extreme” market condition.”

Babel Finance said it faced “unusual liquidity pressures”.

Major Binance stock exchange temporarily suspended bitcoin cash withdrawals and advised customers to use other networks.

Coinbase said Monday it was cutting 18 percent of its workforce, about 1,100 jobs, citing tight economic conditions and overly rapid expansion.

“After more than 10 years, we seem to be entering a recession” economic growthsaid Coinbase founder and CEO Brian Armstrong.

In recent years, the crypto sector has benefited from a massive cash infusion thanks to the easy money policies of the world’s largest central banks

However, rampant inflation has led to tighter monetary policies around the world, contributing to the sector’s collapse.

Bitcoin Drops Below $25,000, Lowest in 18 Months

© 2022 AFP

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