Bitcoin drops below $ 20,000

Bitcoin continued to decline on Saturday, weighed down by investors’ low risk appetite: it fell to $ 18,740, down 9% from the previous day. This is the lowest level since 13 December 2020.

Bitcoin continued to decline on Saturday, weighed down by investors’ low risk appetite: it fell to $ 18,740, down 9% from the previous day. This is the lowest level since 13 December 2020.

From its all-time high on November 10, 2021, at $ 68,991, the digital currency has lost more than 72% of its value. At around 5:50 pm Paris time, it stood at $ 18,941, down 8% from Friday.

A sign that the liquidation continues on this market in full crisis, on Saturday all the main cryptocurrencies dropped drastically. Ether, the second most used digital currency, lost nearly 10%.

The behavior of banks in the face of inflation as an explanation

Equity markets collapsed this week, worried that central banks, the Fed (the US Federal Reserve), would not be too aggressive in their willingness to curb inflation, risking weakening the world economy.

But it is cryptocurrencies that pay the highest price. The cryptocurrency market dropped below the symbolic limit of $ 1 trillion on Monday. It had risen to 3 trillion last November.

The fall of bitcoin was accelerated by the suspension of withdrawals by two cryptocurrency investment platforms.

Celsius announced the termination of withdrawals and transfers on Sunday evening. This company, which managed $ 12 billion worth of assets in mid-May according to its website, specifically offered its users the opportunity to place their “historic” cryptocurrencies, such as bitcoin and ether, to invest in. new virtual currencies.

Babel Finance told clients on Friday that it would suspend all withdrawals due to “unusual liquidity pressures”.

Job cuts on certain platforms

Even a brief freeze in bitcoin withdrawals from the world’s largest exchange, Binance, contributed to the lack of appetite for cryptocurrencies this week.

Cryptocurrency platform Coinbase announced Tuesday that it would be cutting 18% of its workforce, or roughly 1,100 positions.

“It looks like we are entering a recession after an economic boom of over 10 years,” said company co-founder and CEO Brian Armstrong amid justifications for these massive layoffs.

“A recession could lead to another crypto winter and could last for a long time,” he added.

By 2021, this still nascent sector had attracted increasingly traditional financial players, whose risk appetite was fueled by the ultra-accommodative policies of central banks around the world.

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