The cryptocurrency industry was on edge on Monday morning as investors fear contagion problems in the main cipher players It can unleash a major jolt if it is not contained.
Bitcoin, which has lost 57% so far this year And 37% this month, it’s down below $20,000 over weekend for The first Time since December 2020. Level of A symbolic significance, as it was close to the peak of 2017 cycle
The price Follows the fall of difficulties in many major industries playerswhile further declines may have a negative effect.on effect As other cryptocurrency investors are forced to sell their holdings to meet margin calls and cover losses.
Crypto Three Arrows Capital Hedge Fund Exploring Scope optionsincluding sale of assets And a rescue move by another company, its founders told the Wall Street Journal in a story It was published on Friday, the same day that Asia-focused cryptocurrency lender Babel Finance said it would suspend withdrawals.
US-based lender Celsius said earlier this month that it would suspend withdrawals, many of which are of The latest in the industry problems can be tracked back to an amazing meltdown of so called stablecoin TerraUSD in mayo.
Bitcoin was trading on also side of $20,000 on Monday, while No. 2 token The price of ether was $1075, after it fell below her avatar level of 1000 dollars over weekend.
“if it was market Go higher everyone sigh of Relief, things will be refinanced, people Justice will be lifted, and all dangers will be dispelled. But if we move Much less from here, I think it could be total said Adam Farthing, President risk office for Japan has B2C2 crypto liquidity provider.
“There is a lot of withdraw credit from system And if lenders have to absorb losses by percentage and three stocks, they will reduce the size of they future Loan books, which means that full amount of credit available in Environmental coding system many reduced.
“It feels so intense like 2008 for me in terms of how There can be dominoes effect of “Bankruptcy and liquidation,” Farthing said.
be suredevelopments in Encoder synchronization with Stocks drop, as US stocks suffer their biggest weekly percentage decline in Two years on Fears of rising Interest rates and increased probability of recession.
The bitcoin price Tends to move in Almost in a similar way to another method risk assets Such as tech Stores.
Smaller cryptocurrencies have been more difficult hit Of the major icons where investors sought to compare safety of bitcoin And stablecoins whose values are linked to those of traditional assetsMost common in the United States dollar.
general encryption market The capital is about $870 billion, according to price Coinmarketcap website, down from climax of $2.9 trillion in November 2021.
However, even stablecoins market Lowercase letters in Recent months, suggesting that investors withdraw money from the sector as a whole.
rope, the world’s largest stablecoin He saw it market Maximum cap drops to about $68 billion on Monday from over 83 billion dollars in Early May.
