NEW YORK: Bitcoin plunged below $20,000 on Saturday, shedding nine percent from the previous day to fall to $18,740, its lowest level since December 13, 2020.
With investors increasingly wary of risk, the world’s most popular crypto asset has lost more than 72 percent of its value since reaching a high of $68,991 on November 10, 2021.
After sinking to $18,740 on Saturday, Bitcoin rose to $18,941, down eight percent from Friday. Other major digital currencies were also down on Saturday, including ether, which lost nearly 10 percent of its value.
World stock markets plunged this week amid fears that inflation-fighting interest rate hikes by the US Federal Reserve and other central banks could trigger a recession.
Cryptocurrencies have paid the biggest price. The value of the global crypto market fell below the symbolic $1 trillion mark after reaching $3 trillion in November of last year.
Bitcoin’s fall has been accelerated by the suspension of withdrawals by two cryptocurrency platforms. Major exchange Binance temporarily suspended bitcoin withdrawals and advised customers to use other networks.
The Celsius Network said it was pausing “all withdrawals, swap, and transfers between accounts” due to “extreme market conditions.” Babel Finance said it was facing “unusual liquidity pressures.”
Coinbase said it was trimming 18 percent of its workforce, about 1,100 jobs, citing tight economic conditions and overly rapid expansion. “We appear to be entering a recession after a 10+ year economic boom,” Coinbase founder and CEO Brian Armstrong said.
In recent years, the crypto sector benefited from a vast infusion of cash due to easy money policies from the world’s biggest central banks. However, rampant inflation has sparked tighter monetary policy across the globe, helping to send the industry crashing.
