Bitcoin fell to its lowest level in 18 months on Monday, weighed down by a lack of investor risk appetite, with the cryptocurrency market briefly falling below the symbolic $ 1 trillion mark.
The suspension of cryptocurrency investment platform Celsius and the short-term freeze on bitcoin withdrawals from the world’s largest exchange, Binance, have contributed to the lack of appetite for cryptocurrencies.
As stock markets around the world see the red and investors flock to the dollar, a safe haven, the biggest massacre is probably in the world of cryptocommented Jeffrey Halley, analyst at Oanda.
Bitcoin saw its price drop more than 15% on Monday, dropping to $ 22,603, the lowest since December 2020; a drop of more than 66% since it peaked in November 2021.
The cryptocurrency market – valued at more than $ 3 trillion at its highest seven months ago – temporarily dropped the $ 1 trillion threshold, before climbing back to $ 1,008 billion around 4:10 pm, according to CoinGecko. , which lists more than 13,000 different cryptocurrencies.
The Fed rate increase is weighing on the markets
By 2021, this new sector will attract more traditional financial players, whose risk appetite is fueled by the very lax policies of central banks around the world.
But the Federal Reserve’s (Fed) rate hike, which is trying to fight runaway inflation, is weighing on the markets.
In addition, the decline of bitcoin has accelerated after “suspended” Celsius platform withdrawalssaid Mark Haefele, analyst at UBS.
This company, which manages assets worth $ 12 billion in mid-May, according to its website, has notably offered its users to place their cryptocurrencies historic – such as 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 is pleased to be associated with largest cryptocurrency lender in the world.
Due to extreme market conditions, we have suspended all withdrawals and transfers between accountsthe platform announced on Monday.
” There is a breakdown in the crypto space, and it’s likely to get worse. “
The largest cryptocurrency shopping platform, Binance, announced on its Twitter account on Monday that the withdrawal of bitcoins will temporarily suspended.
The company announced a few hours later that these withdrawals had been resumed.
In early May, terra, a cryptocurrency allegedly priced against the dollar, collapsed, causing concern among investors.
Source: Radio-Canada
