BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
SUBSCRIBE
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result
Home Crypto

Bitcoin Slips Below $20,000, Crypto Industry Nervous of Inevitable Ripple Effect

Alexa by Alexa
June 21, 2022
in Crypto
Reading Time: 3 mins read
A A
Bitcoin Slips Below $20,000, Crypto Industry Nervous of Inevitable Ripple Effect
1
SHARES
18
VIEWS
Share on TwitterShare on Reddit

The crypto industry was fearful this Monday as Bitcoin struggled to maintain its value above a key level. This is joined by investor fears that if major assets like Bitcoin continue to struggle further, it could negatively affect the entire crypto market. 

You might also like

Around The Block – MAR 24 Week in News

Web3 Needs its ‘WordPress Moment’ to Speed up Positive Disruption

UK to Mandate Declaration of Crypto Holdings in Tax Forms

Bitcoin, the OG and most popular coin in crypto, traded below an already dangerously low $20,000 earlier this morning. 

The coin even dropped as low as $17,592, which is the most drastic dip since its value of $20,000 in December of 2020. This year it fell nearly 60% of its value and over 37% just this month alone.

Its fall follows problems at several major industry players. Further declines, market players said, could have a knock-on effect as other crypto investors are forced to sell their holdings to meet margin calls and cover losses.

Three Arrows Capital, a cryptocurrency hedge fund, is said to be exploring new options that include the liquidation of assets and a bailout by another firm. This announcement came on the same day that the crypto lender Babel Finance announced it would suspend withdrawals. 

Even crypto lender company Celsius Network said earlier this month that they would do the same and suspend customer withdrawals. Although the company did elaborate by saying they are working closely with regulators and officials to do it in a legal and sustainable manner. 

Adam Farthing, chief risk office for Japan at crypto liquidity provider B2C2, said, “There is a lot of credit being withdrawn from the system and if lenders have to absorb losses from Celsius and Three Arrows, they will reduce the size of their future loan books which means that the entire amount of credit available in the crypto ecosystem is much reduced.”

“It feels very like 2008 to me in terms of how there could be a domino effect of bankruptcies and liquidations,” Farthing continued.

Smaller tokens correlated with Bitcoin’s price fall, with the number 2 most popular coin, Ethereum, dropping below $1000 briefly. 

The fall in crypto markets has coincided with a slide for equities, as US stocks suffered their biggest weekly percentage decline in two years on fears of rising interest rates and the growing likelihood of recession.

Bitcoin and all cryptos are theoretically supposed to exist independently of stock market but lately have proven to be closely correlating. 

The overall crypto market capitalisation is roughly $877 billion, according to price site Coinmarketcap, down from a peak of $2.9 trillion in November 2021.

A fall in stablecoins — a type of crypto designed to hold a steady value — is also suggesting investors are pulling money from the sector as a whole.

Tags: Bitcoin
TweetShareShare

Recommended For You

Around The Block – MAR 24 Week in News

by BlockNews Team
March 24, 2023
0
Around the Block

Introduction In this recap of the crypto world, we will explore the events and news that had the most significant impact in the past week of March 20th....

Read more

Web3 Needs its ‘WordPress Moment’ to Speed up Positive Disruption

by BlockNews Team
March 24, 2023
0
quicknode

QuickNode is leading the charge as Web3 is poised to revolutionize the world, but it needs its "WordPress moment" to accelerate positive disruption. Blockchain technology can upend manual-intensive...

Read more

UK to Mandate Declaration of Crypto Holdings in Tax Forms

by BlockNews Team
March 24, 2023
0
parliment

The government hopes to close regulatory gaps and stop illegal operations by enacting rules that address various parts of the industry. The requirement to disclose cryptocurrency holdings in...

Read more

The Fed Increases Interest Rates By 25 Basis Points- Impact On Crypto Prices

by BlockNews Team
March 24, 2023
0
The Fed Increases Interest Rates By 25 Basis Points- Impact On Crypto Prices

Crypto prices display rapid fluctuations as the U.S. Federal Reserve hikes interest rates by 0.25%. Investors remain upbeat about the medium-term outlook of Bitcoin and the wider crypto...

Read more

Telegram Enables USDT Stablecoin Payments on the Tron Network

by BlockNews Team
March 24, 2023
0
Telegram

Telegram integrates USDT-TRON (TRC20) into its platform, allowing users to send the stablecoin to their contacts seamlessly and without transaction fees. Telegram's venture into cryptocurrencies began with the...

Read more
Next Post
Crypto Lender Babel Finance Blocks Withdrawals Due to Liquidity Fears

Crypto Lender Babel Finance Blocks Withdrawals Due to Liquidity Fears

Related News

morgan stanley building

Morgan Stanley Now Holds Bitcoin

January 11, 2023
OXYA Origin Game Preview

OXYA Origin Game Preview

August 11, 2022
State Regulators Shut Down Flamingo Casino Club for NFT Scams

State Regulators Shut Down Flamingo Casino Club for NFT Scams

June 9, 2022

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Around The Block – MAR 24 Week in News March 24, 2023
  • Web3 Needs its ‘WordPress Moment’ to Speed up Positive Disruption March 24, 2023
  • UK to Mandate Declaration of Crypto Holdings in Tax Forms March 24, 2023

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?