Bitcoin Drops Below $20,000 As Cryptocurrency Crisis Continues

Bitcoin fell below $20,000 on Saturday for the first time since December 2020 as the cryptocurrency market continues to reel from job cuts, rumors of impending insolvency at major cryptocurrencies and a sharp hike in interest rates by the US Federal Reserve.

Main facts

  • Bitcoin was trading at $19,420 as of 7:30 a.m., down 8.1% in the past 24 hours.
  • In the past seven days, the world’s most valuable cryptocurrency has fallen 33%, causing its total market capitalization to plummet from $580 billion to $370 billion.
  • Since hitting an all-time high of $68,990 in November last year, the cryptocurrency has lost over 70% of its value.
  • Ethereum slid another 8.4% in the past 24 hours to $1011, down 39% from the previous week. Other currencies supported by the decline include BNB, which has lost 6.5% in the past 24 hours, Dogecoin (-4.9%) and Solana (-4.3%).
  • The steep price decline began earlier this week after major cryptocurrency lender Celsius announced it would halt all withdrawals, sparking fears over its future.
  • On Tuesday, rumors surfaced of the possible insolvency of Singapore-based cryptocurrency-focused hedge fund Three Arrows Capital after it dumped $40 million in staked Ether tokens.
  • The issue escalated after Su Zhu, co-founder of Three Arrows Capital, said on Twitter that his company was “communicating with relevant parties and committed to resolving this issue”, without giving further details.

Important figure

$891.4 billion. This is the current total market capitalization of all cryptocurrencies in circulation, according to CoinMarketCap. This figure fell below the 1 trillion dollar mark on Monday for the first time in more than a year.

Article translated from Forbes US – Author: Siladitya Ray

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