Bitcoin Price Drops to $20,000 as the Cryptocurrency Root Deepens

The cryptocurrency extended its slide on Wednesday, with bitcoin on the verge of falling below $20,000 for the first time since December 2020.

Bitcoin price was as low as $20,111 in early US trading and was only marginally higher in the afternoon. just recently, It’s $20,655. was onPrice is down 6.1% from Tuesday’s 5 p.m. ET price and 70% from its November 2021 high of $67,802.30, according to Dow Jones market data.

Root in Cryptocurrency That has wiped out nearly a year and a half of gains for bitcoin, which began to rise in late 2020 as speculative excitement in the financial markets.

Since the end of last year, the wind is leaking of cryptocurrency, with investors withdrawing from riskier assets in anticipation of the end of easy-money market conditions.

Two high-profile events have accelerated the cryptocurrency’s decline in recent weeks. in May, the destruction Stablecoin TeraUSD and its sister token Luna prompted the selloff of the cryptocurrency. Then, on Sunday, one of the largest crypto lenders, Celsius Network, said it was Stop all withdrawals, swaps and transfersand spreading panic.

The pain in the cryptocurrency market has been widespread. The price of Ether, the Ethereum network’s in-house currency, fell as low as $1,013 on Wednesday and was at $1,080, down 9% from recent 5 a.m. ET levels. Cardano’s ADA token and also joke cryptocurrency dogecoin Slippage 29 of the top 30 tracked by CoinDesk were down on Wednesday afternoon.

The latest sign of tension and confusion comes from a vague tweet from the co-founder of Three Arrows Capital, a hedge fund that has invested heavily in cryptocurrencies. “We are in the process of communicating with the relevant parties and are fully committed to fulfilling this,” Tweet Told. No further details were given. Three Arrows did not respond to a request for comment.

Major US stock indexes continued to sell on Friday, with the S&P 500 entering bear-market territory for the first time in more than two years. The WSJ’s Caitlin McCabe looks at some of the key reasons behind market volatility. Photo: John Minchillo / The Associated Press

Coincides with the fall of cryptocurrency stock market sell, Earlier this week, S&P 500 enters bear marketDefined as a drop of 20% or more from recent highs.

Deficits have accelerated in recent days after higher-than-expected inflation data for May raised concerns that the Federal Reserve may need to raise interest rates more aggressively. On Wednesday, the Fed approved a 0.75-cent-point interest rate hike and indicated that it would continue to raise rates at a rapid pace this year.

write to Caitlin McCabe [email protected]

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