The cryptocurrency market melted again on Monday, as the price of Bitcoin plummeted to its lowest level since 2020, wiping out years of investment.
Bitcoin has fallen 18 percent in the last 24 hours, to nearly $ 23,000, its lowest value since December 2020, according to CoinMarketCap, an industry price tracker. Ether, the second most valuable cryptocurrency, is down more than 20 percent.
The crash lengthens the terrible period for cryptocurrency, which graphically illustrates the risks of these experimental investments. Just a month ago, the implementation of a popular coin helped trigger a crypto meltdown that erased સમગ્ર 300 billion in value across the market.
Crypto prices began to fall again last week, when a report found a surge in inflation in the United States, which sent shockwaves through markets. Investors were concerned that it could encourage the Federal Reserve to raise interest rates higher and faster, a move that could affect the US economy.
Celsius, the experimental crypto bank, hastened the price decline over the weekend by announcing that it was halting withdrawals “due to extreme market conditions”. At one point this year, Celsius has assets of about $ 20 billion, attracting depositors with the promise of a yield as high as 18 percent if they hand over their cryptocurrency project.
Celsius is one of a number of start-ups in the obscure world of decentralized finance that has come under intense scrutiny due to the declining price of crypto.
The crash in May was triggered by the collapse of the TerraUSD, a so-called stablecoin denominated in US dollars. The $ 1 peg of the coin was backed by a complex financial engineer who linked it to a sister cryptocurrency called Luna. When Luna’s price plummeted in May, TeraUSD plummeted – a “death spiral” that destabilized the broader market.
A similar process was played on Sunday, when Celsius announced it was blocking withdrawals. On the Reddit page for Celsius customers, panicked investors wondered if they would ever be able to get their deposits back. The news spread throughout the crypto markets, causing Bitcoin and Ether prices to plummet.