Bitcoin drops below $19K, lowest since December 2020 | Economy

The value of the Bitcoin cryptocurrency dropped below US$ 19,000 (R$ 98,000, at the current price) this Saturday (18), the lowest level in 18 months.

Investors are nervous about the industry’s growing problems and a general pullback in riskier assets.

  • Bitcoin: Why the Top Cryptocurrency Is Crashing

The digital currency industry took a hit this week after cryptocurrency lending company Celsius freeze withdrawals and transfers between accountswhile some crypto companies laid off employees and there were reports that a cryptocurrency hedge fund had run into trouble.

Bitcoin falling: understand why the main cryptocurrency plummeted 23% in one week

Bitcoin falling: understand why the main cryptocurrency plummeted 23% in one week

In addition to falling stocks, US bonds experience their biggest weekly percentage drop in two years. There are fears about rising interest rates and a growing possibility of recession.

Around 3:30 pm (Brasilia time), bitcoin was trading at $18,430, its lowest level since 2020. The 24-hour devaluation was 10.8% in 24 hours, according to CoinGecko. In seven days, the accumulated low reaches 36.1%.

Ether, the digital currency of the Ethereum blockchain, considered the second most important cryptocurrency, was below the level of US$ 1,000 this Saturday: it was trading at US$ 955.53, with a devaluation of 12% in 24 hours and 42.1 % in the last seven days.

the bitcoin fell 59% in 2022 alone, and rival ether, dropped 73%.

The record value of cryptocurrencies was in November last year. Bitcoin peaked at $68K USD in 2021.

Since then, the accumulated devaluation of cryptocurrencies has reached 70%, according to Bloomberg.

“[O valor estar] Below $20K Shows Confidence in the Crypto Industry collapsed and that you are seeing the latest tensions,” Edward Moya, a senior market analyst at Oanda, said Saturday. “There are many cryptocurrencies and crypto transactions that are under tremendous financial pressure due to borrowing costs.”

For the next week, analysts do not rule out even lower levels for cryptocurrencies, depending on investors’ nervousness with the adjustment in monetary policy and the prospects of recession.

“We cannot say that there has been any sign that the bullish movement is close to returning,” said Humberto Andrade, a trader at MB. “There are perspectives that we can test even bigger funds, we will follow the closing of the weekly candle”, he added.

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