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this cryptocurrency The market melted again on Monday as the Bitcoin price fell to its lowest point since 2020, erasing years of investment.
According to CoinMarketCap, an industry price tracker, Bitcoin has dropped 18 percent in the last 24 hours to nearly $23,000, its lowest value since December 2020. Ether, the second most valuable cryptocurrency, fell more than 20 percent.
The crash is prolonging the dire time for cryptocurrencies, which graphically illustrates the risks of these experimental investments. Just a month ago, the boom of a popular cryptocurrency helped trigger a crypto meltdown that wiped out $300 billion worth of market-wide values.
Crypto prices started falling again late last week. statement In the United States, it showed an increase in inflation that shook the markets. Investors worry that this could prompt the Federal Reserve to raise interest rates higher and faster, a move that could hit the US economy.
The price drop accelerated over the weekend when Celsius, an experimental crypto bank, announced it was halting withdrawals. “Due to extreme market conditions.” At one point this year Celsius had nearly $20 billion in assets and has attracted depositors with the promise of up to 18 percent returns if they entrust their crypto to the project.
Celsius is one of the few start-ups in the dark world of decentralized finance that has come under intense scrutiny as crypto prices plummet.
The crash in May was accelerated by the collapse of TerraUSD, a supposedly stablecoin with a fixed price pegged to the US dollar. The coin’s $1 peg was backed by sophisticated financial engineering that tied it to a sister cryptocurrency called Luna. When Luna’s price fell in May, TerraUSD fell together – a “death spiral” that has destabilized the broader market.
A similar process took place on Sunday, when Celsius announced that it was stopping withdrawals. Panicked investors on a Reddit page for Celsius customers wondered if they could get their deposits back. The news rippled through the crypto markets, causing Bitcoin and Ether prices to plummet.
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