Bitcoin dipped below $20,000 for the first time since late 2020, signalling that the cryptocurrency selloff is intensifying. According to the cryptocurrency news site CoinDesk, the price of the most popular cryptocurrency has dropped more than 13% to a low of $17,593 at one time on Saturday. This is the most vulnerable position for the most popular cryptocurrency since December 2020, before recovering to $18,556, still down 9.22%.
Since hitting its high, Bitcoin has lost more than 70% of its value. Bitcoin reached a high of more than $68,000 in 2021.
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Ethereum, another popular cryptocurrency that has been on the decline in recent weeks, fell in the same way on Saturday. Ether, which is backed by Ethereum, is down 74%. Ether broke below $1,000 and fell over 19 percent to $891, its lowest level since January 2021. Both of the crypto market's bellwethers are down more than 70% from their all-time highs in early November.
The following are some of the reasons why the cryptocurrency market has fallen.
With the collapse of the Terra blockchain last month, more indicators of stress surfaced, and they have increased this week as a result of crypto lender Celsius Network Ltd.'s recent decision to freeze withdrawals.
To add to the gloom, crypto hedge firm Three Arrows Capital reported significant losses and indicated it was considering asset sales or a bailout, while Babel Finance, another lender, followed Celsius's lead this week.
Bitcoin has taken a beating this week when cryptocurrency loan company Celsius halted withdrawals and transfers between accounts, as well as crypto firms laying off workers.