Bitcoin came close to falling below $20,000 as investors continue to flee cryptocurrencies
-
Loading... - Petra Vogel
- 16 Jun 2022
- 228 Views
- 0 Like
- 0 Comment
The sell-off in cryptocurrencies deepened even further on Wednesday, with bitcoin sinking very close to the key level of $20,000.
Bitcoin plunged as much as 10% to an intraday low of $20,166, according to Coinbase data. It was last trading at $21,544.37, down about 2.6%, around 4:24 p.m. ET. The world’s largest digital currency has plunged nearly 70% since the peak of the crypto craze in November 2021.
Charlie Morris, founder of digital asset management firm ByteTree, said $20,000 was close to the peak of bitcoin’s last major bull run in 2017 and so “might prove to be a support level.”
“At $20k, bitcoin has made no money since the 2017 high, but that disguises the outsized returns over all prior time frames,” he told CNBC.
Digital tokens are in free fall as fears of climbing inflation, aggressive interest rate rises and liquidity issues at a key player in the crypto space have plagued crypto markets.
The Federal Reserve raised rates by 75 basis points, as was widely expected. Chairman Jerome Powell also signaled that another 0.75 percentage point hike could come next month, if inflation remains high.
Mostafa Al-Mashita, said crypto has been caught up in the broader “risk-off environment” affecting markets.
“What we are experiencing is the impact of a worsening macroeconomic trend in which inflation is rising because of supply-chain issues,” he said.
Celsius fallout
Earlier this week, crypto lending firm Celsius began blocking users from accessing their funds, stoking speculation that the company may soon become insolvent.Investors worry a possible liquidation of Celsius may lead to even more pain for crypto, potentially knocking down other major players. Read More...
