Another cold spell for bitcoin this weekend

Bitcoin dipped below $ 18,000 on Saturday, dropping to its lowest level since November 2020.

The weekend was complicated for the cryptocurrency ecosystem. While last week was unstable, bitcoin has so far remained stable above $ 20,000. But this weekend, bitcoin has largely fallen below this symbolic bar in the eyes of investors and individuals.

Notably, on Saturday night around 10:50 am, bitcoin hit its lowest point since November 2020, trading around $ 17,750, losing more than 74% of its value from its all-time high of $ 69,000 last November. .

The cryptocurrency then surged late Sunday morning, trading at just over $ 19,293 before climbing above $ 20,000 in prime time.

But the cryptocurrency is still very volatile: this Monday at 9:45 am bitcoin is again trading just under $ 20,000, at $ 19,990. In the space of a week, bitcoin has lost more than 20% of its value, and its capitalization amounts to 380 billion dollars, compared to just over 1 trillion of capitalization last November.

The ether holds up a little better than bitcoin

For its part, ether, the second largest cryptocurrency in terms of capitalization, also fell sharply, trading at less than $ 900 this weekend, stabilizing on Monday at 9:30 at around $ 1,070. Within a week, the ether lost 17% of its value, doing a little “better” than bitcoin in a week.

What happened? Since the last crypto-crash with the collapse of the Terra blockchain, the crypto ecosystem remains severely weakened and this begins to have strong repercussions on some companies. For a week, the Celsius Cryptocurrency Lending Platform blocked funds from its 1.7 million users. The Finblox loan platform also announced new binding terms for its users. At the same time, one of the largest cryptocurrency investment funds Three Arrow Capital, heavily destabilized by the storm in the cryptocurrency market, is considering a rescue plan.

At the same time, monetary tightening with rate hikes decided by the US Federal Reserve and, to a lesser extent, the European Central Bank (ECB) is putting pressure on riskier assets. Silver is more expensive and liquidity is fleeing to the markets. In a gloomy international economic environment, the cryptocurrency market is also highly correlated with traditional financial markets, and in particular with the American technology index Nasdaq. As the Nasdaq tumbled again last week, it dragged down the cryptocurrency market which remains much smaller and volatile to date.

Other more specific elements have been added since this weekend on the cryptocurrency market, in particular on the Solend protocol, which BFM Crypto will not fail to decipher.

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