Courtesy CNBC
Bitcoin as of now costing=$23658, showing a dip of 13.72%
Bitcoin drops 12%, below $24,000, wiping out $200 billion from the crypto market over the weekend.
Bitcoin fell below $24,000 on Monday, hitting its lowest level since December 2020, as investors sold off the cryptocurrency amid a growing sell-off in the risky asset.
• Meanwhile, a crypto credit company called Celsius has suspended withdrawals for its customers, raising concerns about the contagion in the wider market.
• Macro factors are contributing to the decline of the cryptocurrency market, with rampant inflation continuing and the Federal Reserve expected to raise interest rates this week to control price increases.
• “Since November 2021, sentiment has changed dramatically as the Fed raises interest rates and manages inflation. We are also likely looking at a recession as the Fed may eventually have to address the demand side to manage inflation,” Vijay Ayyar, vice president of international and business development at Luno Exchange, told CNBC.
• "All of this suggests that the market hasn't completely bottomed out yet and unless the Fed can breathe a sigh of relief, we're unlikely to see a bounce back."
• ‘Ayyar’ noted that during previous bear markets, bitcoin has fallen about 80% from its most recent all-time high. It is now down about 63% from the all-time high it hit in November.
• “We could see a much lower bitcoin price over the next two months,” Ayyar said.
The crypto market has also been buoyed since mid-May, when the so-called algorithmic stable coin, terraced, or UST, and its sister cryptocurrency luna crashed.
courtesy-imarketsmart.
Celsius- "add fuel to the fire,"
Celsius:- suspended all withdrawals, transactions, and transfers between accounts.
The market is now concerned about a crypto credit company called Celsius, which said on Monday that it has suspended all withdrawals, transactions, and transfers between accounts “because of regulatory reasons and harsh market conditions”.
Celsius, which claims to have 1.7 million customers, advertises to its users that they can make 18% of profits through the platform. Users deposit their cryptocurrency in degrees Celsius.
The cryptocurrency is then loaned to institutions and other investors. The user then receives a profit from the revenue generated by degrees Celsius. But the sell-off in the crypto market has hurt degrees Celsius. The company had assets of $11.8 billion as of May 17, up from more than $26 billion last October, according to its website. CEL, Celsius’s own coin, is down over 50% in the past 24 hours, according to ‘CoinGecko’.
Investors are worried about a wider spread in the crypto market.
“Globally, markets have come under pressure from concerns about inflation and interest rate hikes, but with cryptocurrencies, such contagion events could lead to excessive declines, as markets how tightly bound today is with many interconnected protocols and companies."