Bitcoin plunges below $20,000 to its lowest price in 18 months
Bitcoin plunges below $20,000 to its lowest price in 18 months as its fall from its all-time high of $69,000 shows no sign of stopping
- Largest cryptocurrency fell 7.1%, shortest price since December 2020
- It has lost about 28% since Friday and more than half of its value this year
- Meanwhile, crypto lending company Celsius is freezing withdrawals and transfers
Bitcoin plunged below $20,000 to its lowest price in 18 months today as the decline shows no sign of stopping.
The largest cryptocurrency fell 7.1% to $18,993 this morning at 9:06 AM, having previously touched $18,732, its shortest price since December 2020.
It has lost about 28% since Friday, more than half of its value this year, and is down 70% from a record high of $69,000 in November.
Overall, Bitcoin is down about 59% in 2022, while rival cryptocurrency Ethereum-backed Ether is down 73%.
It comes after Hong Kong-based cryptocurrency lender Babel Finance yesterday suspended withdrawals amid a large-scale downturn in the market, saying in a statement it is “facing unusual liquidity.”
The digital currency sector took a hard hit this week after cryptocurrency lending company Celsius froze withdrawals and transfers between accounts, citing “extreme” terms.
The sector has also suffered losses after companies such as Coinbase Global Inc, Gemini and Blockfi said they would lay off thousands of employees because investors would dump risky assets.
According to CoinMarketCap, the value of the global crypto market has fallen to less than $900 billion from a peak of nearly $3 trillion in November.
Not everyone got out in time, as analysts argue that a $21,000 price floods 45% of investors — meaning an asset is worth less than it was paid for.
But some measures are making retail investors double up and view the sell-off as an attractive buying opportunity.
Vanda Research data shows that net inflows from retail investors into crypto-related stocks and exchange-traded funds have risen to $570 million in the past 10 days, a pace not seen since January last year.
Future Perfect Ventures partner Jalak Jobanputra told Yahoo Finance Live, “We are in the midst of a crypro winter.
‘As we see more contagion within the crypto markets and more funds start to fail’ [things] might change but I’m still thinking about [bitcoin] as the most blue-chip crypto not so exposed to questionable risk management practices.”