Bitcoin price fell below $24,000 for the first time since 2020, dropping to $23822.31. Since the November high, the Satoshi Nakamoto token has lost more than 60% of its value. Ethereum also lost 17.41% to $1,204.
Cryptocurrency market cap fell to $1.020 billion from 3 trillion in November, with digital currencies under pressure for weeks. In these hours, crypto lender Celsius Network’s decision to suspend withdrawals and transfers due to harsh market conditions is touching.
In recent weeks, cryptocurrencies, as well as traditional markets, have participated in Investors flee high-risk assets, but showed higher volatility. Not helping is the data on US inflationary pressures in May which rose to 8.6% y/y, bolstering expectations of monetary policy tightening by the Federal Reserve.
According to Analysts, Bitcoin’s Fall May Be Just BeginningAll eyes are on the Federal Reserve’s meeting on Wednesday and Thursday, which could raise interest rates by as much as 75 basis points. In a tweet, CEO Changpeng Zhao announced that Binance, a major cryptocurrency exchange, has temporarily suspended Bitcoin withdrawals due to a blocked transaction due to a backlog. He added that the problem should be resolved in 30 minutes. The announcement was made at 2 pm Italian time.