Bitcoin fell again and this time to an 18-month low of around $25,000, months after hitting a record high, as investors shied away from riskier assets in the face of a worldwide market selloff.
The cryptocurrency was also hit hard by the announcement that bitcoin lending platform Celsius Network had halted withdrawals due to turbulent market conditions.
As Bitcoin is the leading crypto currency, because of the fell, the entire crypto market have dropped and is still dropping. Also the stock market drops and investors have lost millions of dollars due to this free fall.
Since Friday, when statistics showed US inflation at a new four-decade high, investors have fled to safer assets like the dollar, fueling recession fears.
“We have witnessed a greater correlation over the previous few years between traditional stocks, which have also lately collapsed, and the cryptocurrency market,” said XTB chief market analyst.
In early London trading, the world’s most popular cryptocurrency fell roughly 10% to $23,794, a level last seen in December 2020. Since reaching a high of $68,991.85 in November 2021, the virtual unit has lost 65 percent of its value.
Investors sought protection on Monday, as the Federal Reserve of the United States is expected to raise borrowing costs even more aggressively to confront rising inflation.
After the report from Celsius Network, Bitcoin’s depreciation increased, it said “Today, we are notifying that all withdrawals, swaps, and transfers between accounts on Celsius have been paused,” the site said in a statement.The decision was taken “due to extraordinary market conditions,” according to Celsius.