January 28, 2023

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Selling continues, Bitcoin and Ethereum plummeting

Selling continues, Bitcoin and Ethereum plummeting

Illustrative image of two commemorative bitcoins with a green background.

Artur Widak | Norfoto | Getty Images

Bitcoin It briefly fell below $21,000 on Tuesday in Asia before bouncing back a bit, extending its slide as investors Selling risky assets.

The world’s largest cryptocurrency has fallen nearly 14% in the past 24 hours, while raised It has fallen more than 12% over the same period, according to Coinbase data.

Bitcoin was hovering around $21,800 on Tuesday in Asia.

“Everything is on fire right now, whether it’s stocks, whether it’s crypto assets or something else,” said Nirmal Ranga, head of trading and technical analysis at crypto exchange ZebPay.

“What you see in the market is…fear, uncertainty and doubt. Technically, the markets look oversold and there should be some ground that we are going to hit in bitcoin in the near future,” he told CNBC. “Street Signs of Asia”.

Crypto assets hacked on Monday As trading platforms like Celsius and Binance stops withdrawalsSome companies have cut jobs.

Celsius said withdrawals, exchanges and transfers between accounts would be halted due to “harsh market conditions” and that the move was aimed at “stabilizing liquidity and operations.”

“We are taking this action today to put Celsius in a better position to fulfill, over time, its obligations to withdraw,” The company said in a note.

Meanwhile, the world’s largest cryptocurrency exchange, Binance, has suspended Bitcoin withdrawals for more than three hours “due to a halt in transactions that caused a backlog.”

The cryptocurrency market cap fell below $1 trillion on Monday for the first time since February 2021, Data from CoinMarketCap showed. About $200 billion has been wiped off the market in recent days.

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Read more about technology and cryptocurrency from CNBC Pro

The cryptocurrency sale comes as investors are widely shunning risky assets on the back of fears of a possible global recession as major central banks around the world raise interest rates to tame inflation.

Policymakers at the US Federal Reserve are now considering the idea of ​​a 75 basis point rate hike later this week, according to CNBC’s Steve Liesman. This is larger than the 50 basis point rally many traders had been expecting. The The Wall Street Journal I mentioned the story first.

Higher rates tend to make future earnings for growth assets look less attractive.

Bitcoin is down nearly 70% from its all-time high in November 2021.