The price of bitcoin has plunged below $20,000 as the cryptocurrency’s brutal selloff deepens.
According to CoinDesk, bitcoin fell momentarily to $18,739.50 and remained below $20,000 on Saturday, losing 72% of its value in November. Concerns about the Federal Reserve’s actions to contain higher-than-expected inflation have pushed both stocks and cryptocurrencies into a bear market. Big names in the industry, including
coinbase global Inc.,
Largest cryptocurrency exchange in the US, Recently announced job cuts,
“It will be a lot of pain for a lot of investors,” said Yuya Hasegawa, market analyst at Japanese crypto exchange BitBank Inc. People will lose faith in the crypto market as a whole, but experienced crypto investors and those who believe in it said that its long-term prospects will be worth buying at discounted prices.
Ether, another major cryptocurrency, fell below $1,000, briefly reaching $975.35 on Saturday, its lowest level since January 2021, according to CoinDesk.
Bitcoin’s fall from a record high of $67,802 in November has contributed to a near $2 trillion wipeout from the broader market. According to data provider CoinMarketCap, the total market capitalization of crypto, which stood at about $3 trillion in November, stood at about $846 billion on Saturday.
Bitcoin traded around $30,000 for most of May before falling sharply again in June following a fresh inflation shock and concerns about a rise in US interest rates. Investors are offloading risky assets such as cryptocurrencies and technology stocks.
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