LONDON, June 15 (Reuters) – Bitcoin fell to a new 18-month low on Wednesday, dragging smaller chips with it and deepening the market crisis caused by crypto lender Celsius this week that froze customer withdrawals.
The world’s largest cryptocurrency fell 7.8% to $ 20,289, its lowest level since December 2020. It has lost about 28% since Friday and more than half of its value. value this year. It has fallen about 70% from its all-time high of $ 69,000 in November.
The digital currency sector has been hit this week after US crypto lender Celsius froze withdrawals and transfers between accounts, fueling fears of contagion in markets already shaken by the disappearance of terraUSD and lunar tokens in the month past.
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Expectations of sharper increases in US Federal Reserve interest rates as inflation in the world’s largest economy rises have also increased pressure on risky assets from cryptocurrencies to the actions.
Cryptographic funds recorded $ 102 million in outflows last week, according to digital asset manager CoinShares, citing investors’ anticipation of a tighter central bank policy.
CoinMarketCap data shows that the value of the global cryptocurrency market has fallen 70% to less than $ 900 billion from a high of $ 2.97 trillion in November.
Bitcoin so far in 2022
“The ripples running through the market have not stopped yet,” said Scottie Siu, Hong Kong-based investment director at Axion Global Asset Management. “I think we’re still in the middle, unfortunately the game isn’t over.”
Celsius has hired restructuring lawyers and is looking for possible investor financing options, the Wall Street Journal reported, citing people familiar with the matter. Celsius is also exploring strategic alternatives, including a financial restructuring, he said.
Smaller cryptocurrencies, which tend to move in conjunction with bitcoin, also fell. Ether, the second-largest witness, fell as much as 12 percent to $ 1,045, a new 15-month low.
The chaos in the cryptocurrency market has spread to other companies, with a series of exchanges that have cut the workforce.
The main US stock exchange Coinbase Global Inc (COIN.O) said on Tuesday that it will reduce about 1,100 jobs, or 18% of its workforce. Gemini, another U.S. stock exchange, said this month it would cut 10% of its workforce. Read more
Still, others continue to hire. Binance, the world’s largest stock exchange, said on Wednesday it was hiring for 2,000 jobs, and the US stock exchange Kraken said it had 500 positions to fill. Read more
“Take it,” Binance CEO Changpeng Zhao tweeted.
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Report by Tom Wilson; additional report by Alun John in Hong Kong, edited by William Maclean and Jason Neely
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