Bitcoin crashes below $21,000 for the first since 2020 as crypto market losses now top $2 trillion

What started as a minor pullback over the weekend has turned out to be one of the worst days for crypto investors as bitcoin continues on its downward spiral. Bitcoin has now fallen below $21,000, a level not seen since December 2020.

Bitcoin hits a new low this evening as the world’s most popular cryptocurrency now trades at $20,854 as of the time of writing. In just one day, the cryptocurrency market has lost about $1 trillion of its total market cap, a drop of 18.43% over the past 24 hours as of 9:59 PM EST, according to data from CoinDesk. Overall, the crypto market has now lost $2 trillion in value since its November 2021 peak.

The sudden crypto market crash started after crypto lender Celsius disclosed on Sunday it was freezing all withdrawals and transfers for all of its 1.7 million crypto customers due to what the crypto startup described as “extreme market conditions.”

Celsius offers crypto investors higher-than-average interest rates on their deposits. As of May, the cryptocurrency lending platform has more than $8 billion lent out to clients and almost $12 billion in assets under management, its website said, down by more than half from October, and had processed a total of $8.2 billion worth of loans.

While many crypto investors were hoping the recent dip was just a bump on the road, Bitcoin has since shed more than $8,000 from its $30,000 peak on Friday. While some crypto investors are still “buying the dip,” many experts are now warning the situation could get worse before they get better. The world’s most popular cryptocurrency fell by at least 13% on Monday to below $22,000, the lowest it’s been since 2020.

Meanwhile, Microstrategy’s CEO Michael Saylor continues to advise crypto their trust in Bitcoin.

That's really going to cost you. Trust has been broken. You can try praying, but that won't work either. The best thing you can do now is sell while you still can. Whoever gets stuck with the largest stack of #Bitcoin when the music stops is the biggest loser.

— Peter Schiff (@PeterSchiff) June 14, 2022