The bitcoin price dropped another 6% Saturday to $19,149.60, which lowered the value to under $20,000 for the first time since December 2020.
Ether is having trouble too, and the second-largest cryptocurrency fell 7% too, with its value at $996.2, the lowest it’s been in 15 months.
Investors in crypto are dealing with the interest rates from the Fed this week, and some big players in crypto are in major trouble.
Celsius, a crypto lender with a $3 billion valuation, announced they had halted withdrawals which locked their users out of their funds. Many analysts are wondering if this will lead to their insolvency.
The top two “blue chip” cryptocurrencies now are below what is regarded as their symbolic barriers of $20K for bitcoin and $1,000 for Ethereal. This could trigger a wave of forced liquidations that could further lower prices.
The buzz in the financial markets is just how low things will go. A story in Decrypt referenced bitcoin analyst Sam Callahan is saying bitcoin could fall to under $14,000. That would mark a drop of over 80% from the November 2021 all-time high.
Longtime bitcoin investors have dealt with dips before. Remember back in December of 2018, when bitcoin fell below $3,000.
The total market cap for all cryptocurrencies is $35 billion. Seven months ago, it was $3 trillion.