Bitcoin drops below $20,000 as crypto crash continues

The last time bitcoin was at this level was November 2020, when it was on its way up to its all-time high of nearly $69,000.

Investors are selling off riskier assets because central banks are raising interest rates to combat quickening inflation.
Reuters

Investors are selling off riskier assets because central banks are raising interest rates to combat quickening inflation.

The price of bitcoin has dropped below $20,000 for the first time since late 2020, in a fresh sign that the selloff in cryptocurrencies is deepening. 

Bitcoin, the most popular cryptocurrency, on Saturday fell below the psychologically important threshold, dropping as much as 9 percent to less than $19,000, according to CoinDesk.

The last time bitcoin was at this level was November 2020, when it was on its way up to its all-time high of nearly $69,000.

Bitcoin has now lost more than 70 percent of its value since reaching that peak.

READ MORE: What are stablecoins and how did they trigger a crypto market crash?

Ethereum, another widely followed cryptocurrency that's been sliding in recent weeks, took a similar tumble on Saturday.

Sign of turmoil

It's the latest sign of turmoil in the cryptocurrency industry amid wider turbulence in financial markets. 

Investors are selling off riskier assets because central banks are raising interest rates to combat quickening inflation.

A spate of crypto meltdowns has erased tens of billions of dollars of investors’ assets and sparked urgent calls to regulate the freewheeling industry.

READ MORE: How are cyber criminals targeting cryptocurrency users?

Cryptocurrency lending platform Celsius Network said this month it was pausing all withdrawals and transfers, with no sign of when it would give its 1.7 million customers access to their funds.

Stablecoin Terra imploded last month, erasing tens of billions of dollars in a matter of hours.

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