Connect with us


Bitcoin Drops Below $20,000 Again, As Pressure Continues To Mount On Crypto Market

Avatar of Arsi Mughal



Bitcoin Drops Below $20,000 Again, As Pressure Continues To Mount On Crypto Market

(CTN News) – The price of bitcoin briefly fell below $20,000 on Wednesday due to factors ranging from macroeconomic concerns to issues with cryptocurrency companies.

According to CoinMetrics, the world’s largest cryptocurrency traded down less than 1% last night at around $20,070.77. Earlier on Wednesday, bitcoin fell to $19,841.

Ether and other digital coins were also lower.

Over the last two weeks, Bitcoin has been trading in a tight range and is unable to make a significant move above $22,000.

The narrative of looming recession and mushrooming inflation is guiding bitcoin lower today, according to analysts at cryptocurrency exchange Bitfinex.

As inflation remains high, central banks are also poised to raise interest rates further, causing fears of a recession.

U.S. stock markets fell on Tuesday, and futures remained under pressure on Wednesday. U.S. stock markets tend to move lower or higher in tandem with bitcoin movements.

According to Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, bitcoin will likely trade between $17,000 and $22,000 “for a while,” given current market sentiment and another expected interest rate hike in July from the US Federal Reserve.

Crypto liquidity issues

Over the last few weeks, a crash in cryptocurrency prices has wiped off billions of dollars from the cryptocurrency market, exposing major liquidity problems for firms.

A crypto lender Celsius halted withdrawals for users this month citing “extreme market conditions.” An exchange also paused withdrawals after a client defaulted on a debt.

In the meantime, prominent crypto hedge fund Three Arrows Capital defaulted on a Voyager Digital loan worth more than $670 million.

A credit line has been offered by FTX CEO Sam Bankman-Fried to struggling firms such as BlockFi and Voyager Digital.

After the falls, the market is taking a breather. As dominoes are propped up, there are still systemic issues,” Charles Hayter, CEO of CryptoCompare, told CNBC.

Related CTN News:

Trade Markets Review – Pros & Cons Uncovered 2022
‘SEO’ Software Market To Grow Massively By 2031
Tesla To Reduce Salaried Workforce By 10% Over Next 3 Months, Says Musk

Arsi Mughal is a staff writer at CTN News, delivering insightful and engaging content on a wide range of topics. With a knack for clear and concise writing, he crafts articles that resonate with readers. Arsi's pieces are well-researched, informative, and presented in a straightforward manner, making complex subjects accessible to a broad audience. His writing style strikes the perfect balance between professionalism and casual approachability, ensuring an enjoyable reading experience.

Continue Reading

CTN News App

CTN News App

Recent News


compras monedas fc 24

Advertise here

Volunteering at Soi Dog

Find a Job

Jooble jobs

Free ibomma Movies