Cryptocurrency Crisis Deepens: Bitcoin Falls Below $20,000

LONDON — The value of bitcoin fell below US$20,000 on Saturday for the first time since the end of 2020, a further sign of the crisis affecting the cryptocurrency sector.

Bitcoin, the most popular cryptocurrency, tumbled 9% to a value below $19,000, according to CoinDesk.

The last time bitcoin was worth this little was in November 2020, but at that time it was booming.

After peaking at nearly $69,000, bitcoin has fallen over 70%.

Eteherum, another popular cryptocurrency, has been following the same downward trend for the past few weeks. It suffered a bitcoin-like fall on Saturday.

These falls signal strong disruptions in the cryptocurrency industry and in the financial market. Investors are shedding their riskiest assets as central banks raise their policy rate to fight escalating inflation.

The cryptocurrency debacle wiped out tens of billions of dollars in assets. It provoked strong calls for the regularization of this freewheeling sector.

A leading cryptocurrency platform Celsius Network announced this month that it was halting all withdrawals and transfers. The company has not said when its 1.7 million customers will be able to access their funds again.

Another company, Stablecoin Terra, collapsed in the last month, losing trillions of dollars in a matter of hours.

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