Bitcoin, the world's biggest cryptocurrency, dropped recently to as low as $17,592.78, falling below the key $20,000 level for the first time since December 2020. The cryptocurrency business was recently on edge as bitcoin held just above $20,000, and investors were afraid that problems at key crypto players could release a broader market shakeout.
Although, it picked up a little during London trading hours recently, at around $20,510, but the cryptocurrency sector's latest breakdown has still lost 55% of its overall value this year and 35% this month alone.
The fall of Bitcoin has led to several problems at some major crypto firms. According to the market players, the further decline could result in a knock-on consequence as other crypto investors are also required to sell their holdings to suffice margin calls and cover losses.
Three Arrows Capital, a crypto hedge fund, is discovering options, including the sale of assets and redemption by another firm, said its founders on the same day Babel Finance, an Asia-focused crypto lender, said it would suspend withdrawals.
Joseph Edwards, head of financial strategy at fund management firm Solrise Finance, said this is the worst of things in considering any singular entity suffering. Still, most in the industry are prepared for more to be coming in the future.
Additionally, smaller tokens that run in line with bitcoin were also said to have been impacted. Ether was at $1,129, dropping below its symbolic level of $1,000 over the weekend.
This fall in crypto markets has overlapped with a slide for equities. The US stocks have suffered a massive decline in their biggest weekly percentage in the last two years with fears of rising interest rates and the increasing likelihood of a recession.
Source Credit - https://indianexpress.com/article/technology/tech-news-technology/bitcoin-holds-near-usd-20000-as-investors-fear-domino-effect-7981132/