Posted in: 13/06/2022 – 14:22Last updated: 13/06/2022 – 14:20
London (AFP) – Bitcoin fell to an 18-month low on Monday, below $25,000, due to investors shunning risky assets amid nervous global markets.
At a time when stock markets around the world fell as investors flock to the dollar as a safe haven, Jeffrey Haley, an analyst at Oanda, said that “the most severe downturn is likely to happen in the world of cryptocurrency.”
The most famous digital currency fell by regarding 10% at around 0840 GMT to $ 24,580, a decrease of more than 65% compared to the highest levels recorded by Bitcoin in November 2021 and its lowest levels in December 2020.
While the cryptocurrency market was worth more than $3 trillion at its peak seven months ago, it is approaching $1 trillion according to Coingecko, which tracks over 13,000 different cryptocurrencies.
In 2021, this still nascent sector has attracted a growing number of traditional financial investors whose appetite for risk has been opened up by the ultra-loose policies of central banks around the world.
But the increase in the interest rate on the dollar, which was decided by the US Federal Reserve to stop the hyperinflation, is weighing on the markets.
In addition, Bitcoin’s decline accelerated “following Celsius suspended withdrawals,” according to Mark Heffley, an analyst at UBS.
This $12 billion company is especially suggesting to its users to use their “historic” cryptocurrencies like bitcoin and ether to invest in new cryptocurrencies.
In October, Celsius raised $400 million from the Quebec Depository Fund, which expressed its satisfaction at partnering with “the world’s leading provider of cryptocurrency loans.”
The platform announced Monday that “due to severe market conditions, we are suspending all withdrawals and transfers between accounts.”
“There is a downturn in the crypto space and it is likely to get worse,” said Neil Wilson, analyst at Markets.com.
In early May, the cryptocurrency Terra, which is supposed to be pegged to the dollar, collapsed, sparking investor fears.
© 2022 AFP