NEW YORK (AP) – Bitcoin fell to a psychologically significant threshold on Saturday – less than $ 20,000, for the first time since the end of 2020, a new sign that Sell is deepening in the cryptocurrency.
Price is Most Popular Cryptocurrency According to cryptocurrency news site CoinDesk, it dropped 12% to less than $ 18,100 on the east coast in the late afternoon.
Bitcoin was the newest at this level in November 2020, when it reached a peak of nearly $ 69,000, according to CoinDesk. Many in the industry believe it is less than $ 20,000.
Bitcoin has lost more than 70% of its value since it reached its peak.
Ethereum, another widely used cryptocurrency that has been declining in recent weeks, experienced a similar decline on Saturday.
The cryptocurrency industry has experienced turmoil amid wider turmoil in the financial markets. Investors are selling more risky assets as central banks raise interest rates to combat accelerating inflation.
According to coinmarketcap.com, which monitors cryptocurrency prices, the total market value of cryptocurrency assets has dropped from $ 3 trillion to $ 1 trillion. On Saturday, company data showed the value of the global cryptocurrency market was approximately $ 834 billion.
The cryptocurrency merger wave prompted urgent requests to regulate the freewheeling industry and last week Bipartisan Legislation Entered the U.S. Senate to regulate digital assets. The industry also stepped up lobbying efforts – according to documents and interviews, which brought in $ 20 million in bids to Congress for the first time this year.
Cesar Frakas, a finance professor at the University of Texas at Austin who leads the school’s blockchain initiative, believes falling below Bitcoin’s psychological threshold is not a big deal. Instead, he said he should focus on the latest news from lending platforms.
One of them, the Celsius Network, said this month that it would stop all withdrawals and transfers, with no indication of when it would allow its 1.7 million customers to access their funds. Another platform, Babel Finance, said in a statement posted online on Friday that it would suspend payments and withdrawals due to “unusual liquidity pressures.”
“There’s a lot of excitement in the market,” Frakassi said. “And the reason prices are falling is there is a lot of concern about the oversupply of the sector.”
Cryptocurrency exchange platform Coinbase announced Tuesday that it has eliminated approximately 18% of its workforce, blaming CEO and co-founder Brian Armstrong for the upcoming “cryptocurrency.”
Stablecoin Terra crashed last month and lost tens of billions of dollars in value in a matter of hours.
Crypto was filled with a lot of popular culture until its last collapse, the Super Bowl ads featuring digital asset ads and the celebrities and personalities on YouTube who regularly posted it on social media.
David Gerrard, cryptocurrency and author of Attack of the 50 Foot Blockchain, said the recent collapse shows the frustration of regulators, who he believes the industry should have taken more seriously years ago. Many newborn investors, especially young people, have invested in the false hope that they will be sold, he said.
“Here are the victims of real people who are normal people.”
Chan reported from London.
Source: Huffpost
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.