The value of Bitcoin in the market has fallen below $ 20,000 for the first time since November 2020, and the reason for that is the wider collapse of the market caused by rising interest rates, inflation, and economic uncertainty.
According to the New York Times, the value of Bitcoin at one point was $ 19,149, and the decline was accelerated by the collapse of two major cryptocurrency projects Terra-Luna and Celsius. Senior market analyst Edward Moya said growing fears of a recession are also significantly threatening the cryptocurrency market.
“You have so much pessimism in the space,” said Ed Moya, a crypto analyst at OANDA. “There’s no confidence right now to buy the dip”. The cryptocurrency market capitalization fell below $1 trillion for the first time since February 2021, according to data from CoinMarketCap.
Also, this news upset the crypto world because of this morning's news about the termination of all transactions, and most importantly the payment, the company Celsius, which offers cryptocurrency locking services, on which it gives a certain percentage of interest.
The statement said they had paused all "payments, swaps and transfers between accounts due to extreme market conditions" and that they were doing so to "put Celsius in a better position today to meet its commitment over time", ie to allow users all transactions.
Celsius is one of the largest companies in the field of these services. Investor Jeff Gundlach also spoke about the turbulence in the cryptocurrency market, saying that he would not be surprised if the value of Bitcoin dropped to $ 10,000.
"When it broke below $30, it looked on a chart basis $20 was going to happen quickly, and it did. The trend in crypto is clearly not positive," Gundlach told CNBC on Wednesday, referring to the $30,000 and $20,000 levels.
"It looks like it's being liquidated. I'm not bullish at that $20,000 or $21,000 on bitcoin. I wouldn't be surprised at all if it went to $10,000," he said in a "Closing Bell" interview. "We've already seen around the edges some blowups in parts of the crypto world, and that could be foreshadowing some problems," Gundlach said.