LONDON: Bitcoin tumbled on Wednesday to a new 18-month low, dragging smaller tokens down with it and deepening a market meltdown sparked by crypto lender Celsius this week freezing customer withdrawals.
The world’s largest cryptocurrency fell as much as 7.8 per cent to $20,289, its lowest since December 2020. It has lost around 28pc since Friday and more than half of its value this year. It has slumped about 70pc from its record high of $69,000 in November.
The digital currency sector has been pummelled this week after US crypto lender Celsius froze withdrawals and transfers between accounts, stoking fears of contagion in markets already shaken by the demise of the terraUSD and luna tokens last month.
Expectations of sharper US Federal Reserve interest rate hikes as inflation in the world’s biggest economy soars have also heaped pressure on risky assets from cryptocurrencies to stocks.
Crypto funds saw outflows of $102 million last week, according to digital asset manager CoinShares, citing investors’ anticipation of tighter central bank policy.
The value of the global crypto market has tumbled 70pc to under $900 billion from a peak of $2.97 trillion in November, CoinMarketCap data shows.
Published in Dawn, June 16th, 2022