Bitcoin price fell over 30% this week to $20,000

The world’s most valuable cryptocurrency has fallen about 15% since Monday and nearly a third since Friday, according to data from crypto exchange Coinbase. The coin has lost around 70% of its value since its all-time high in November last year, when it traded around $69,000.

Falling below $20,000 would be a sobering step for a market that has boomed during the pandemic, analysts say.

“A break below $20,000 would be a massive psychological blow and could send bitcoin further into a tailspin,” Craig Erlam, senior market analyst at Oanda, a foreign exchange firm, said in a note on Tuesday.

Ether, the second most valuable digital coin, fell 12% on Thursday. It has now lost 78% of its value since its peak in November.

As the world’s major central banks raise interest rates to tame inflation, traders have dumped their riskiest investments, which include volatile crypto assets.

The beleaguered industry braces for further suffering.

Coinbase said on Tuesday it would lay off around 1,000 of its employees – representing 18% of its workforce – citing fears of an impending economic downturn and a “crypto winter”. Shares of the company have taken a hammer blow since its IPO in April last year. Once worth nearly $100 billion, it is now valued at less than $12 billion.

The Celsius Network, one of the world’s largest cryptocurrency lenders, announced on Monday that “extreme market conditions” had forced it to temporarily suspend all withdrawals, crypto exchanges and transfers between accounts.

The company told its 1.7 million customers that it had made the decision to “stabilize cash and operations while taking steps to preserve and protect assets.” He said it would “take time” before customers were allowed to withdraw their deposits again.

Binance, the world’s largest cryptocurrency exchange, suspended withdrawals on its bitcoin network for a few hours on Monday after some transactions “stuck” and caused a backlog.

Jordan Valinsky contributed to this report.


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