Illustration image of two commemorative bitcoins with green background.
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Bitcoin Continuing its decline as investors fell below $21,000 in Asia on Tuesday before bouncing back slightly Sold riskier assets.
The world’s largest cryptocurrency is down nearly 14% in the past 24 hours, while ethereum According to data from Coinbase, it is down by more than 12% over the same period.
On Tuesday, the price of bitcoin in Asia was around $21,800.
“Everything is on fire right now, be it equities, crypto assets or whatever,” said Nirmal Ranga, head of trading and technical analysis at crypto exchange ZebPay.
“What you see in the market is… fear, uncertainty and doubt. Technically, the markets look oversold and bitcoin should have some floor in the coming future,” he told CNBC. “Street Science Asia.”
The crypto asset was hammered on Monday as trading platforms like Celsius and Binance halts withdrawalsAnd some companies cut jobs.
Celsius said withdrawals, swaps and transfers between accounts would be halted due to “extreme market conditions” and that the move was to “stabilize liquidity and operations”.
“We are taking this action today to better position Celsius to honor its return obligations, over time.” The company said in a memorandum.
Meanwhile, Binance, the world’s largest crypto exchange, halted bitcoin withdrawals for more than three hours “due to a backlog caused by a stuck transaction.”
The market capitalization of the cryptocurrency slipped below $1 trillion on Monday for the first time since February 2021, Data from CoinMarketCap showed. Nearly $200 billion has been wiped out from the market in recent days.
The crypto sell-off comes as investors widely shunned riskier assets against a backdrop of fears of a possible global recession as major central banks around the world raise interest rates to tame inflation.
According to CNBC’s Steve Lysman, policymakers at the US Federal Reserve are now considering the idea of a 75-basis-point rate hike later this week. This is larger than the 50-basis-point increase that many traders expected. wall street journal Tell the story first.
Rising rates make future earnings less attractive for a development property.
Bitcoin is down almost 70% from its all-time high in November 2021.