The digital currency Bitcoin, in its rapid descent, fell well below the psychologically important mark of USD 20,000. At times, the oldest and best-known cybercurrency cost just $17,649, about 14 percent less than on Friday and the lowest in 18 months. In November, a bitcoin was nearly four times more expensive at around $68,000, and its value has fallen more than 60 percent since the start of the year.
“The $20,000 breakthrough shows that confidence in the crypto industry has collapsed,” market analyst Edward Moya of The Americas OANDA said on Saturday. “There are too many cryptocurrencies and crypto exchanges that are under tremendous financial pressure given the cost of borrowing,” he said, referring to rising interest rates.
Many small investors who had invested their money in cryptocurrencies would now be permanently deterred. The fall in prices has been accompanied by significant losses in global equity markets due to fears of a recession.
Two crypto projects in trouble
At the same time, two prominent crypto projects ran into trouble, reducing confidence in the entire market and accelerating its descent. First, the Terra-Luna digital currency project collapsed, then Celsius – a sort of bank for transactions with cryptocurrencies – had to stop withdrawals.
Bitcoin and other digital currencies have traditionally been subject to strong fluctuations. There have been several so-called crypto winters in recent years, around 2014 and 2018, in which prices plummeted before rising again later. This time, however, the economic environment is even more difficult than it was then.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
