Bitcoin temporarily fell below $ 19,000 on Thursday as investors digested the collapse of the crypto hedge fund Three Arrows and the rise in risk. , Reached the lowest level of the year. Recession.
According to CoinBase data, the major cryptocurrencies were down 4.4% to $ 19,209.20 as of Thursday at 9:30 am ET. Bitcoin's value has plummeted by nearly 60% so far this year, to more than 70% of its record high of $ 69,000 last November.
"Bitcoin continues to be under pressure like any other asset. The combination of high inflation, rising interest rates and recession is putting pressure on cryptocurrencies," said SEBA Bank's chief investigator. Eve Longchamp,, told CNBCabout the sale.
Other top cryptocurrencies are also struggling. Ethereum fell more than 6% to $ 1,032 and Solana fell 6% to $ 32.
The recent recession has already recovered from a month of sold-out, following a series of negative developments within the crypto sector. Investors dumped cryptocurrencies and stocks as the Federal Reserve steadily raised interest rates to curb decades of high inflation.
The sharp plunge in Bitcoin prices has created fears of a liquidity crisis among struggling operators.
Before the ruinThe leading crypto hedge fund, ThreeArrowsCapital, which made a large investment in the Luna crypto token of fate, is a law from creditors. After facing a challenge, he went into liquidation, according to several reports, he has exceeded his outstanding debt.
"It's no wonder that three-arrows capital, a crypto-focused hedge fund, was liquidated after the default was reported," said Edward Moya, an analyst at broker Oanda. It is stated in. Attention to investors. "There is growing concern that the collapse of Three Arrows Capital could cause further market spillover."
Another development described it as "extreme market conditions" last week. CoinFlex, the latest cryptocurrency exchange to suspend withdrawals, has revealed that it has no plans to resume trading on Thursday as originally planned. CNBC reported.
Cryptographic investors also acknowledged in a panel discussion Wednesday that the central bank is ready to tolerate the higher risks of a recession from Federal Reserve Board Jerome Powell.Responded to the latest guidance. Lower inflation.
"Is there a risk of going too far? There is certainly a risk," Powell said. "The bigger mistake is to say so. It fails to restore price stability."
Cryptocurrencies have been strongly correlated with equities in recent months. In pre-market trading on Thursday, the major indices have fallen and the Dow Jones Industrial Average futures have lost more than 300 points.
