London, (Business News Report)|| Bitcoin has plummeted to below $19,000, for the first time since the end of 2020, in light of the pressures on digital currencies with the US interest rate hike.
Bitcoin fell, to 18,900, in a decline in its market value for 12 days in a row.
Ether also breached the $1,000 level for a brief period and then fell to $999.86, the lowest level since January 2021, before paring losses.
“The crypto house is on fire, and everyone is just rushing to the exits because there is a complete loss of confidence in the space,” says Ed Moya, a senior markets strategist at financial firm Oanda.
The high-priced environment was detrimental to more risky assets, such as cryptocurrencies, contributing to Bitcoin’s decline of nearly 70% from its all-time high in November.
The market, which began to slide late last year on the back of less accommodative Fed expectations, is now showing signs of broader distress after the collapse of the Terra blockchain last month and the recent decision by cryptocurrency lender Celsius Network to halt withdrawals.
The value of the cryptocurrency market now makes up a small part of its highs in late 2021 when bitcoin traded near $69,000 and traders poured money into speculative investments.
According to Coingeco, the total cryptocurrency market capitalization is around $900 billion, down from $3 trillion in November.
The collapse in the cryptocurrency market continues in light of the decline in the global market, and the decline in risk appetite.
The market is now calculating the possibility of the market entering a recession, with the Fed raising rates aggressively to counter high inflation.
The Fed raised interest rates last week at the highest rate since 1994.
Stable currencies, especially Tether, moved aggressively early in Saturday’s trading, with a strong focus on whether these currencies will be able to maintain their value, and what impact they will have.
Tether saw their combined value collapse below the $70 billion mark this week.
