Bitcoin falls under the key threshold of $ 20,000

The price of Bitcoin has fallen under the important threshold of $ 20,000 for the first time since November 2020, which causes the risk that a new wave of sales will be triggered and the crisis in the area of ​​digital assets will be deepened.

The largest cryptocurrency, which serves as a benchmark for the wider cryptomarkt, fell a decrease of around 9 percent on Saturday morning to less than $ 19,000. This brought it to the highest level of the previous bull run on the cryptoma markets in 2017 and destroyed years of profit for long -term owners.

The traditional financial markets were shaken this week after a trio of large central banks, led by the US Federal Reserve, had increased credit costs to contain the strong inflation. Global shares recorded their worst week since the darkest days of pandemic in March 2020 when dealers feared that the aggressive action could impair global growth or even trigger a recession.

The cryptoma market is under particularly strong pressure, since the race for returns, which was triggered by the massive stimulation efforts by central banks and governments at the peak of the pandemic, is abolish.

investors and managers have observed the Bitcoin price in the past few days because they feared that a decline under $ 20,000 could lead to large-scale liquidations for large-scale betting on the markets, which could continue to put the price under pressure and get the credit crisis that has already taken large crypto creditors and dealers.

Last week, Celsius and Babel Financial, two crypto loan companies, blocked withdrawals, while Three Arrows did not meet the lenders' claims to raise additional means to cover poor bets. Last month Luna and Terra-two tokens that were popular with crypto dealers who were striving for ultra-high yields-broke together.

"The domino stones fall now," said Conor Ryder, analyst at the research and data provider Kaiko, on Friday. "With more domino stones, more forward movement will probably come down, which will probably experience a snowball with these liquidations."

Bitcoin has lost more than 70 percent of its value since its high last autumn, since investors flee to more speculative assets with the tightening of monetary policy around the world. The entire crypto market value fell from a maximum of 3.2 trillion dollars to less than $ 1 trillion. The price for ether also fell below $ 1,000 and has a decline of more than 70 percent this year.

Smaller lenders have also reduced or exposed to the withdrawals, while the Voyager Voyager crypto platform listed in Toronto signed a deal on Friday to borrow more than $ 200 million from the Alameda trade company.

"Today's measures give voyager more flexibility to alleviate the current market conditions," said Stephen Ehrlich, Chief Executive.

"Voyager only used the credit facilities if this is necessary to protect customer assets," he added.

ryder assumes that the further decline in the markets will put further pressure on other lenders and dealers.

"If we get one leg down, it quickly becomes clear who just clung to his life," he said.

Additional reporting by Adam Samson in Milan