Bitcoin falls below $ 20,000

Bitcoin continued to fall on Saturday, weighed down by investor risk appetite: it fell to $ 18,740, a 9% drop from the previous day. This is its lowest level since December 13, 2020.

Bitcoin continued to fall on Saturday, weighed down by investors’ lack of appetite for risk: it fell to $ 18,740, a 9% drop from the previous day. This is its lowest level since December 13, 2020.

Since its all-time high on November 10, 2021, at $ 68,991, the digital currency has lost more than 72% of its value. At around 5.50pm Paris time, it stood at $ 18,941, down 8% from Friday.

Signal that liquidation continues in this market in the midst of crisis, all major cryptocurrencies fell sharply on Saturday. Ether, the second most used digital currency, lost almost 10%.

The behavior of banks in the face of inflation as an explanation

Stock markets have plummeted this week, worried about the idea that central banks, led by the Fed (US Federal Reserve), would not be too aggressive in their desire to curb inflation, at the risk of weakening the world economy. .

But it is the cryptocurrencies that pay the highest price. On Monday, the cryptocurrency market fell below the symbolic $ 1 billion limit. It had risen to 3 billion last November.

The fall of bitcoin was accelerated by the suspension of the withdrawals of two cryptocurrency investment platforms.

Celsius announced an interruption in withdrawals and transfers on Sunday evening. The company, which managed $ 12 billion worth of assets in mid-May, according to its website, offered its users the opportunity to place their “historic” cryptocurrencies, such as bitcoin and ether. to invest in new virtual currencies.

Babel Finance told customers on Friday that it was suspending all withdrawals due to “unusual liquidity pressures”.

Reduction of jobs on certain platforms

A brief freeze on bitcoin withdrawals from the world’s largest exchange, Binance, also contributed to a lack of appetite for cryptocurrencies this week.

The cryptocurrency platform Coinbase announced on Tuesday that it would cut 18% of its workforce, or around 1,100 positions.

“It looks like we’re entering a recession after more than 10 years of economic boom,” co-founder and CEO Brian Armstrong said amid justifications for such massive layoffs.

“A recession could lead to another crypto winter and could last for an extended period of time,” he added.

By 2021, this nascent sector had attracted more and more traditional financial players, whose risk appetite was fueled by the ultra-fluid policies of central banks around the world.

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