Bitcoin Stabilizes After Slumping 70% From Its Record High Last Year
Bitcoin held steady on Tuesday, June 14, 2022, after hitting a new 18-month low earlier in the day, as major crypto lender Celsius Network's freezing of withdrawals and the prospect of sharp US interest rate rises shook the volatile asset class, according to Reuters' Tom Wilson, Elizabeth Howcroft, and Hannah Lang.
Photo Insert: Bitcoin has lost roughly half of its value this year and more than 20% since Friday alone.
Bitcoin clawed its way back into positive territory after falling as much as 7.3 percent overnight to $20,816, its lowest level since December 2020. It was last trading near $22,470.
The world's largest cryptocurrency fell 15% on Monday, the most in a single day since March 2020. It has lost roughly half of its value this year and more than 20% since Friday alone. It has dropped nearly 70% since its all-time high of $69,000 in November.
Celsius, citing "extreme" market conditions, said this week that it had frozen withdrawals and transfers between accounts "to stabilize liquidity and operations while we take steps to preserve and protect assets."
The move, combined with expectations of sharper US Federal Reserve interest rate hikes following high US inflation data last week, pushed the value of the crypto market below $1 trillion for the first time since January 2021.
Most cryptocurrency market participants were pessimistic about bitcoin's near-term prospects.
"With the broader risk sentiment firmly negative, the sellers have had it all to themselves for a few days," said Richard Usher of cryptocurrency firm BCB Group. He added that "It will take a significant shift in overall risk sentiment to turn the price around significantly."
Coinbase Global Inc. announced on Tuesday that it would cut 18 percent of its workforce, or approximately 1,100 jobs, as part of efforts to cut costs amid volatile market conditions.