Bitcoin Crumbles, Crypto Falls, Another Sign Of The Emerging Recession
Bitcoin fell again on Wednesday to yet another 18-month low, spurring a sharp drop in crypto markets, made even worse by crypto lending giant Celsius freezing all customer withdrawals.
The world’s largest cryptocurrency, Bitcoin, dropped another 7.8% to $20,289, the lowest value since December 2020. The currency has lost 28% of its value since Friday and more than 50% over the last month.
It has dropped more than 70% from its peak of $69,000 in November of 2021.
Almost all Cryptocurrencies took a significant hit this week after U.S. crypto lender Celsius froze withdrawals and transfers between all customer accounts. The move spurred on fears of wider fall-out in cryptocurrency markets already shaken by the demise of the LUNA token last month.
The founder of LUNA reportedly used the token scheme to defraud investors, withdrawing more than $80 million per month for himself before letting the token crash.
Do Kwon Sent $80 Million a Month to Secret Wallets? https://t.co/9quhvYlven
— Watcher.Guru (@WatcherGuru) June 9, 2022
The U.S. Federal Reserve continues to raise interest rates to offset soaring inflation. The move has continued to put pressure on risky assets such as cryptocurrencies and stocks.
“The ripples running through the market haven’t stopped yet,” Scottie Siu, investment director at Hong Kong-based Axion Global Asset Management, told Reuters. “I think we’re still in the middle of it; unfortunately, the game isn’t over.”
Smaller cryptocurrencies, which tend to vary in value with bitcoin, also dropped sharply. Ether, the world’s second-largest cryptocurrency, dropped about 12% on Wednesday to $1,045, a new 15-month low.
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