The Bitcoin tumble leaves the average buyer in the red

The "bloodbath" of the cryptocurrency industry worsened on Wednesday when Bitcoin reached new annual low -centers, which drove the average buyer of the world's most popular digital wealth value in the red.

Bitcoin fell under $ 20,000 for the first time since July last year, while Ether, the token connected to the Ethereum blockchain, fell to almost $ 1,000

The declines mean that Bitcoin has lost 70 percent of its value since the highest level last autumn and is now being understood under a widespread market index that is known as a "realized price" - the average that buyers for in circulation.

The declines have deepened the crisis that the markets for digital assets have captured in the past few months, since investors get out of risky assets and have some of the greatest actors difficult to make their promises on excessive returns.

This month the total value of the largest cryptocurrencies fell below $ 1 trillion, compared to a maximum of $ 3.2 trillion in November. Investors' trust was eroded when Terra Network, a popular stable coin, collapsed and the Celsius loan platform prevented its customers from lifting money. Some of the world's largest stock exchanges, including Coinbase and Gemini, have released thousands of employees to master the downturn.

"It's a bloodbath out there. Hunk.

Jay Hao, CEO of OKX, warned the investors to pay attention to levered positions in a volatile market. "Everything can happen. It can get worse. Adequate risk management is the best way to survive. Be careful."

Noelle Acheson, Head of Market Insights at Genesis Trading, said that Bitcoin had only fallen under his “realized” prize for the third time this week - currently around $ 23,038, according to Glassnode. In the other two cases - in November 2018 and March 2020 - this signaled that Bitcoin was "very close to the market floor", she said.

The $ 20,000 brand also represents a significant threshold for cryptocurrency, as it brings the price close to the highest levels that were achieved during the last major increase in crypto prices in 2017.

The withdrawal of crypto takes place in the middle of a broad sale at the global financial markets, since the central banks begin to reduce economic support that the markets have charged since the Covid 19 pandemic in 2020. The declines were most painful for highly speculative assets.

"We are in the middle of a sale in the global markets, which does not help. There is nowhere to take risks," said Ilan Solot, partner at Tagus Capital, a crypto hedge fund.

He warned that a decline under $ 20,000 for Bitcoin and $ 1,000 for ether could lead to further faults, since retailers are forced to sell assets in order to meet the demand for more collateral and margins in leverage business. Ether is considered a deputy for the hiring of investors to decentralized financial projects, which are often created with the Ethereum blockchain.

"The leverage in the system must be drastically reduced. This can be ordered or disorganized," said Solot.

On Monday, Celsius, one of the largest crypto loans, prevented its customers from withdrawing money, citing the "extreme market conditions". The credit company, which in mid-May had a fortune of USD 12 billion and claims to have more than 1 million customers, had been given risky bets on the defi markets.