Bitcoin fell below the $20K psychological barrier this Saturday, which has not happened since December 2020.
According to data compiled by Bloomberg, the world’s largest market cap cryptocurrency fell 9.2% to $18,740, its 12th consecutive day of decline, the worst streak ever.
The “crypto queen” downgrade extended to other crypto assets, with Ether falling almost 11% to $975.24, losing support at $1,000 and hitting its lowest level since January 2021.
These two cryptocurrencies are about 70% below the all-time highs reached last November.
“Global macroeconomic uncertainty, coupled with the spectacular collapse of the crypto ecosystem, has driven prices down at a rate that has surprised investors,” said Kunal Goel, an analyst at Messari, quoted by Bloomberg.
Other cryptocurrencies are also not immune from the Bitcoin fiasco: all cryptocurrencies tracked by Bloomberg are trading in the red today. Shares of Cardano, Solana, Dogecoin and Polkadot fell 7-10% this Saturday.
The toxic combination of bad news and higher interest rates has penalized riskier assets like cryptocurrencies heavily.
“Investors continue to be on the defensive after last year’s liquidity-driven bull market,” Alkesh Shah, director of crypto strategy and digital assets at Bank of America, said in a note published Friday for Bloomberg. “While foaming in this sector is painful, it is likely beneficial as investors focus on projects with clear liquidity and profitability strategies, rather than just revenue growth,” he adds.
The crypto sector is also under pressure, such as the Earth collapse last month, exacerbated by the decision of Celsius and Babel Finance this week to suspend buyouts.
According to data compiled by CoinGecko, the crypto market capitalization was around $880 billion this Saturday, comparable to the $3 trillion reached in November when Bitcoin and Ethereum peaked.
