Bitcoin lows since late 2020, crypto market below $1 trillion

The suspension of cryptocurrency investment platform Celsius and the brief freeze on Bitcoin withdrawals from the world’s largest exchange Binance contributed to a lack of appetite for cryptocurrencies.

As stock markets around the world see red and investors flock to the dollar, a safe haven The biggest carnage is probably taking place in the crypto worldcommented Jeffrey Halley, analyst at Oanda.

Bitcoin’s price fell more than 15% on Monday, falling to $22,603, its lowest level since December 2020; a drop of more than 66% since its all-time high in November 2021.

The cryptocurrency market — worth more than $3 trillion at its peak seven months ago — temporarily fell below the $1 trillion mark before climbing back up to $1,008 billion around 4:10 p.m., according to CoinGecko . , which lists more than 13,000 different cryptocurrencies.

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Fed rate hike weighs on markets

By 2021, this fledgling sector had increasingly attracted more traditional financial players, whose appetite for risk was fueled by ultra-loose policies from central banks around the world.

But the Federal Reserve’s (Fed’s) interest rate hike, which is trying to combat runaway inflation, is weighing on markets.

In addition, Bitcoin’s decline has accelerated after the Celsius platform “suspended” withdrawalsnotes Mark Haefele, analyst at UBS.

This company, which, according to its website, managed $12 billion worth of assets in mid-May, notably offered its users to place their cryptocurrencies historical – like bitcoin and ether – to invest in new cryptocurrencies.

In October, Celsius notably raised $400 million from the Caisse de Depot et Placement du Québec (CDPQ), which was delighted to be associated with the the world’s largest cryptocurrency lender.

Due to extreme market conditions, we are suspending all withdrawals and inter-account transfersthe platform announced on Monday.

There are fractures in the crypto space, and it’s likely to get worse. »

A quote from Neil Wilson, Analyst at Markets.com

The largest cryptocurrency shopping platform, Binance, announced on its Twitter account on Monday that the withdrawal of bitcoins had taken place temporarily suspended.

The company announced a few hours later that those payouts had resumed.

In early May, Terra, a cryptocurrency reportedly priced against the dollar, plunged, worrying investors.

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