Bitcoin (BTC) briefly falls below $ 20,000 as cryptocurrency increases

Bitcoin and other cryptocurrencies have fallen sharply as investors dump risky assets. A crypto lending company called Celsius has stopped withdrawing funds for its customers, raising fears of infection in the wider market.

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On Wednesday, bitcoin briefly fell below $ 20,000 as the market continues to weigh a number of factors, from macroeconomic concerns to problems with cryptocurrency companies.

According to CoinMetrics, the world’s largest cryptocurrency was last traded 1.3% to $ 20,008.36. Earlier on Wednesday, bitcoin fell to $ 19,841.

Other digital coins, including ether, were also lower.

Over the past two weeks, bitcoin has been trading in a narrow range, unable to make a significant move well above $ 22,000.

“The narrative, which could continue for the rest of the year and beyond, is leading to a decline in bitcoin today, one of the impending recession and rising inflation,” cryptocurrency exchange analysts Bitfinex said in a note Wednesday.

Inflation continues to remain high, while central banks are also looking to further raise rates, raising fears of a recession in the US and other countries.

U.S. stock markets fell on Tuesday, and futures remained under pressure on Wednesday. Bitcoin is closely associated with movements in U.S. stock markets and tends to follow them lower or higher.

Vijay Ayar, Luno’s vice president of corporate development and international cryptocurrency development, told CNBC that bitcoin is likely to trade between $ 17,000 and $ 22,000 “for a while, given current market sentiment” and another expected interest rate hike from the US Federal Reserve. in July, which continues to “weigh all risky assets”.

“Most rebounds sold out over the past few weeks are generally classified as bear market rebounds to detain late buyers just so they sell out positions lower,” Ayar said.

Problems with crypto liquidity

Sam Bankman-Fried, CEO of the cryptocurrency exchange FTX, has intervened to save struggling firms including BlockFi and Voyager Digital by offering lines of credit.

“The market is taking a break after the falls. There are still systemic problems as people support different dominoes so as not to cause impact effects, ”said Charles Hayter, CEO of the CryptoCompare website, via CNBC email.

Bitcoin (BTC) briefly falls below $ 20,000 as cryptocurrency increases

Source link Bitcoin (BTC) briefly falls below $ 20,000 as cryptocurrency increases

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