Bitcoin has dropped 14% falling below $24,000 while the crypto market lost almost $200 billion during the weekend.
The world’s most valuable cryptocurrency tumbled almost 16% since last Friday, sitting at its lowest level since December 2020. Bitcoin has lost more than 60% since its all-time high last November, when peaking at almost $69,000, according to Coinbase.
Monday morning Bitcoin was traded at $23,575 on Wall Street as investors started the week selling-off risk assets.
The crypto market has plunged in recent months since the Federal Reserve is hiking interest rates to tame skyrocketing inflation, which last Friday again reached levels not seen in 40 years.
Ether, the second-most-valuable crypto in value has fallen 27% since Saturday, and more than 70% since November. The so-called “stablecoins” or cryptocurrencies that are tied to more traditional assets, also had an impact.
The crypto lending company Celsius Network said on Monday that “extreme market conditions” forced them to stop withdrawals for its 1.7 million customers, sending alarms to investors.
After the recent collapse of Terra last month, which wiped out the savings of thousands of investors, Treasury Secretary Janet Yellen warned about the risk of cryptocurrencies.
In a Senate hearing she said her department was due to release a report on the matter.