Bitcoin crashes to $22,000 as crypto sell-off continues
Bitcoin has crashed down to $23,643.30, its lowest level since December 2020. Over $200 was billion wiped off the entire crypto market over the weekend which resulted in liquidations in the entire crypto futures market as investors dump crypto amid a broader sell-off in risk assets. Bitcoin is now trading at $23,554.00 as of the time of writing.
The world’s most popular cryptocurrency fell by as much as 12% over the weekend. Bitcoin plummeted over the weekend with prices falling from $28,000 to $26,000 yesterday night, with more than $100 billion wiped from the entire crypto market after U.S. Treasury secretary Janet Yellen issued a stark warning against cryptocurrency.
Global macro events are contributing to the bearishness in the crypto markets, with rampant inflation continuing and as the U.S. Treasury secretary, Janet Yellen issued a stark warning against cryptocurrency. The U.S. Federal Reserve expected to hike interest rates this week to control rising prices.
On Friday, The US Labor Department (DOL) has come out with its latest inflation data and it’s not looking good. In fact, it’s getting worse. According to DOL, the consumer-price index increased 8.6% in May from the same month a year ago, marking its fastest pace since December 1981.
The fear of the Federal Reserve raising interest to slow the inflation has also sparked a sudden $200 billion crypto price crash, sending Bitcoin, Ethereum, BNB, Solana, Cardano, XRP, Dogecoin, Polkadot, Tron, and Avalanche into further free fall.
Bitcoin is not alone. Altcoins were also hit hard with ether falling to its lowest level in more than 14 months. The world’s second-largest crypto by market cap was recently trading at below $1,250, off more than 18% over the weekend.
Meanwhile, the broader crypto market crash has caused crypto lender Celsius to pause withdrawals. Citing ‘extreme market conditions,’ Celsius has stopped customers from withdrawing their funds. The startup is one of the largest players in the crypto lending space, with more than $8 billion already lent out to clients and almost $12 billion in assets under management as of May.
Updates 11:AM EST: Bitcoin is now trading at $22,771.