Bitcoin drops below US$20,000 as crypto selloff quickens

LONDON –

The price of bitcoin dropped below US$20,000 on Saturday for the first time since late 2019. This is a sign that the cryptocurrency selloff is intensifying.

According to CoinDesk. Bitcoin, the most popular cryptocurrency fell below the psychologically crucial threshold. It dropped as high as 9% to less then $19,000

This was the last time bitcoin reached this level in November 2020, as it was just a few months away from reaching its all-time high at nearly $69,000.

Bitcoin has lost over 70% of its value since the peak.

Ethereum, another cryptocurrency that is widely followed, experienced a similar tumble on Saturday.

It’s the latest sign there is of turmoil in cryptocurrency industry, amid wider turmoil in financial markets. Investors are selling riskier assets as central banks raise interest rates to combat rapid inflation.

A string of crypto meltdowns have wiped out billions of dollars worth of investor assets, prompting calls for regulation of this free-wheeling industry.

Cryptocurrency lending platform Celsius Network saidThis month, it was halting all withdrawals or transfers and did not specify when it would provide access to its 1.7million customers.

Stablecoin Terra crashed last month, erasing tens to billions of dollars within hours.