The cryptocurrency market has collapsed for several reasons, including rate increases by central banks.
The value of the world’s major cryptocurrency, bitcoin, continues to fall record-breaking, dropping on Saturday, June 18, to $ 19,000, Reuters wrote.
Today, the price of bitcoin has fallen nearly 6.8% to $ 19,040, the lowest since December 2020.
It has been noticed that cryptocurrencies are becoming cheaper as investors are clearing risky assets in the face of rising central bank rates.
Since last November, when Bitcoin hit a record $ 69,000, the currency has lost 60% of its value.
The impetus for the crash came when major crypto lender Celsius Network froze withdrawals this week, citing “extreme” market conditions. As a result, 1.7 million customers will not be able to redeem their assets.
Reuters wrote that the cryptocurrency industry is having difficulty investigating due to concerns that digital assets are being used to avoid sanctions against Russia, as well as the TerraUSD cryptocurrency crash in May, which led to a market crashes and raised concerns about systematic risks.
This week, the US Federal Reserve for the first time since 1994 immediately raised the base interest rate by 0.75% of the base point – to 1.5-1.75% per annum.
And the Swiss National Bank for the first time since 2007 raised the discount rate by 50 basis points to minus 0.25% per annum.
News from Athletistic in the Telegram. Subscribe to our channel Athletistic
Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.