Bitcoin has fallen more than 15 percent to $ 25,000 against the dollar, its lowest level since December 2020.
The world’s largest cryptocurrency was hit by a sell-off of risk assets after Friday’s astonishing US 8.6 percent rise in inflation, a 40-year high, raising expectations of more aggressive austerity measures by the Federal Reserve and other global central banks.
The weekend’s fall was extended today after Celsius Network, a key player in crypto lending, announced it would suspend withdrawals and transfers between accounts due to “extreme market conditions.”
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Lenders, which raised $ 750 million late last year, offer interest-bearing products to customers who deposit their cryptocurrency and lend cryptocurrency to earn a return. As of May 17, the company had processed ্যের 8.2 billion in debt and $ 11.8 billion in assets, according to its website.
Rival cryptocurrencies also declined, with Ether, the second-largest digital currency, falling 12 percent to its lowest level since February 2021. Both Solana and Dodgecoin decreased by 14%
Confidence in crypto, which until recently has been spoken of as a potential hedge against inflation, was shattered by the fall of TerraUSD last month, which broke its dollar peg and caused the price to fall.
The value of Bitcoin has more than tripled from $ 20,000 to a record $ 68,000 between December 2020 and March, due to an increase in trading on the day of the epidemic among retail investors equipped with U.S. stimulus checks and lockdown savings.
Bitcoin has now lost 61 percent while Ether has dropped 72 percent from their November highs, causing financial distress to millions of holders who boarded crypto bandwagons during the epidemic.