the biggest and oldest cryptocurrency, traded at around the psychologically important level of $20,000 on Monday after falling more than 20% over the past seven days.
The digital currency was up 6% in the previous 24 hours to $20,7688, according to CoinDesk. Other coins, including
were also up on the day.
Cryptocurrencies may be facing another highly volatile week after the Federal Reserve’s biggest interest-rate increase since 1994 jolted markets. Some analysts see this as a fresh crypto winter that will eventually pass, while others wonder if the recent crash heralds the end of the crypto industry altogether.
Bitcoin fell almost 15% on Saturday before climbing back on Sunday. The currency slipped below $20,000 for the first time since 2020 last week. It peaked at nearly $70,000 in November.
The $20,000 level is important as a floor for traders to test. It’s also a point at which some companies that borrowed to invest in Bitcoin, such as
may face margin calls on the loans.
Celsius Network, a crypto lender with more than $11 billion in deposits, last week halted withdrawals as prices of cryptocurrencies fell precipitously. It was followed by another lender, Babel Finance, on Friday. Crytpo hedge fund Three Arrows Capital’s founders said the firm has seen large losses and is considering asset sales or a rescue.
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