Bitcoin collapses further as the crypto market sees a sharp dip

Bitcoin collapses further as the crypto market sees a sharp dip

The world’s largest cryptocurrency, Bitcoin has slumped nearly 70% since its high of $69,000, recorded in November.

Bitcoin tipped recently to a new 18-month low, standing at $20,289 and dragged several other smaller tokens down with it.

Cryptocurrencies have witnessed a sharp fall after US-based crypto lender, Celsius halted transfers and withdrawals between accounts, amid fears of wider fallout in digital currency market which were already weekend by the demise of the Luna tokens and TerraUSD, in the previous month.

Furthermore, as the prices of digital currencies continue to dive, there are more predictions that losses will proliferate.

In addition, the US Federal Reserve interest has also been hiked due to the inflation in the world’s largest economy which has further bolstered the pressure on risky assets from cryptos to stocks.

According to CoinShares, a digital asset management firm, crypto funds witnessed outflows of $102 million in the last week, owing to investors’ prediction of tighter central bank policy. CoinMarketCap data denotes that the total value of the global crypto market has fallen to $900 billion, which is very low from a high of $2.97 trillion back in November.

Scottie Siu, investment director at Axion Global Asset Management, Hong Kong, said that the ripples going on in the market haven’t stopped till now and he believes that the traders and investors are still in the middle of uncertainty.

According to a credible source, Celsius has hired lawyers for restructuring and is looking for suitable financing options from investors. The company is also planning to dive into strategic alternatives including financial restructuring.

Smaller cryptocurrencies, which moves in tandem with BTC, also fell. Ethereum, the world's second-largest crypto coin, fell by 12%, currently standing at $1,045, a new 15-month low.

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