Bitcoin at its lowest since late 2020

Published on :

The cryptocurrency world is panicking as bitcoin hits its lowest level in two years. The suspension of withdrawals on the Celsius asset management platform accelerated this 10% fall which worries investors.

Bitcoin plunges again: the cryptocurrency saw its price drop more than 10% to $24,580 on Monday, June 13, around 8:40 a.m. GMT. Bitcoin is at its lowest since December 2020 and has fallen more than 65% since its all-time high in November 2021.

As stock markets see red around the world and investors flock to the safe haven dollar, “probably the biggest carnage is in the crypto world,” said Jeffrey Halley, analyst at Oanda.

>> To read on France 24: Cryptocurrencies: anatomy of carnage

A fall accelerated by the suspension of withdrawals on Celsius

In 2021, the still nascent cryptocurrency industry had the capabilities of more and more traditional finance players, whose risk appetite was fueled by ultra-loose central bank policies around the world.

But the rate hike by the US Federal Reserve (Fed), which is trying to fight runaway inflation, is weighing on the markets.

In addition, the decline of bitcoin accelerated “after the Celsius platform ‘suspended’ withdrawals”, comments Mark Haefele, analyst at UBS. The company Celsius, which managed assets valued at $12 billion in mid-May according to its website, offered its users in particular to place their “historic” cryptocurrencies, such as bitcoin and ether, to invest in new cryptocurrencies. .

“Due to extreme market conditions, we are suspending all withdrawals and transfers between accounts,” the platform announced on Monday.

Investor concern

“There is breakage in the crypto space and it is likely to get worse,” warns Neil Wilson, an analyst at Markets.com.

In early May, terra, a cryptocurrency that was to be priced against the dollar, crashed, causing investors concern.

With AFP

.

Leave a Comment