The cryptocurrency industry is gripping anxiety as bitcoin tumbles near the key $ 20,000 level.

Bitcoin, which has lost 57% so far and 37% this month, fell below $ 20,000 over the weekend for the first time since December 2020. This level has a symbolic significance, as it corresponded to approximately peak of the 2017 cycle.

The fall in price follows the struggles of several major players in the industry, while subsequent falls could have a knock-on effect, as other cryptocurrency investors are forced to sell their holdings to deal with margin calls and cover losses.

Cryptographic hedge fund Three Arrows Capital is exploring its options, including selling assets and rescuing another company, its founders told the Wall Bourse Journal in an article published Friday, the same day as the lender. Babel cryptographic. would suspend withdrawals.

U.S. creditor Celsius Network said earlier this month that it would suspend withdrawals, and many of the industry’s recent problems date back to the dramatic collapse of the so-called TerraUSD stablecoin in May.

Bitcoin was trading at $ 20,000 on each side on Monday, while token number 2, Ether, was at $ 1,075, after falling below its own level of $ 1,000 over the weekend.

“If the market goes up, everyone breathes a sigh of relief, things will be refinanced, people will increase their wealth, and all the risk will go away. But if we go down a lot from here, I think it could be total shit,” he said. Adam Farthing, head of the Japan Risk Office of the B2C2 crypto-liquidity provider.

“A lot of credit is being withdrawn from the system and if creditors have to absorb the losses of Celsius and Three Arrows, they will reduce the size of their future loan books, which means that the total amount of credit available in the ecosystem cryptographic is very small “.

“It seems to me very much in 2008 as to how there could be a domino effect of bankruptcies and liquidations,” Farthing said.

Undoubtedly, the evolution of cryptography coincided with a fall in equities, as US equities suffered their biggest weekly percentage drop in two years due to fears of rising interest rates and rising probability of recession. [MKTS/GLOB]

The price of bitcoin has tended to move in the same way as other risky assets such as technology stocks.

Smaller cryptocurrencies have been hit even harder than major cryptocurrencies, and investors are looking for the comparative security of bitcoins and stablecoins whose values ​​are tied to those of traditional assets, most often the US dollar.

The global market capitalization of cryptocurrencies is about $ 870 billion, according to the listing site Coinmarketcap, below a maximum of $ 2.9 trillion reached in November 2021.

However, even the limits of the stable currency market have fallen in recent months, suggesting that investors are withdrawing their money from the sector as a whole.

Tether, the world’s largest stable currency, saw its market capitalization fall to about $ 68 billion on Monday from more than $ 83 billion in early May.

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