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Bitcoin under $ 18,000: the cryptocurrency industry in a downward spiral

Bitcoin under $ 18,000
The cryptocurrency industry in a downward spiral

Bitcoin is still falling rapidly and brings other computer currencies with it. Things are also getting tough for companies that make money in the cryptocurrency industry. The problem is that, unlike banks, there are no disclosure requirements.

Bitcoin continued its recent decline on Saturday, dipping well below the $ 20,000 mark. Sometimes, the oldest and most well-known cyber currency costs as little as $ 17,649, about 14% cheaper than on Friday and the lowest in the last 18 months.

Bitcoin 18,603.50

In November, a bitcoin was nearly four times more expensive at around $ 68,000, and the value has fallen by more than 60 percent since the beginning of the year. The cryptocurrency Ethereum lost 73% over the period. According to industry service CoinMarketCap.com, the combined market value of all nearly 20,000 cyber currencies had recently dropped below the $ 1 trillion mark.

“The $ 20,000 breach shows that confidence in the cryptocurrency industry has collapsed,” market analyst Edward Moya of The Americas OANDA said Saturday. “There are too many cryptocurrencies and cryptocurrency exchanges that are under enormous financial pressure given the cost of the loan,” he said, referring to the rise in interest rates. Many small investors who had invested their money in cryptocurrencies now would have been constantly scared.

Falling prices are accompanied by significant losses on global equity markets due to fears of a recession. Jochen Stanzl, chief market analyst at CMC Markets, referred to a general sell-off in risky markets just a few days ago. If Bitcoin does not rise to just under $ 33,000 by the end of the month, there is a risk of another collapse to 10,000 from a technical point of view.

Thousands of people face dismissal

In the cryptocurrency market, investors were recently concerned about the difficulties of Celsius Networks, a cryptocurrency loan provider. Celsius said he was suspending withdrawals and transfers between accounts to stabilize liquidity and operations. The company lends digital money, provides cryptocurrency-backed loans, and offers savings products to customers who invest their computer currencies with the company. On its website, the company advertises annual returns of up to 17%.

The market fears that other companies in the sector will be sucked into the abyss. One problem is that companies like Celsius operate in a gray area, explained Matthew Nyman of the CMS law firm. Unlike classic banks, they are not subject to any clear regulation with corresponding disclosure obligations. Several companies in the sector have announced that thousands of employees will be laid off. In this context, investors have recently separated from stocks in the cryptocurrency industry and from the companies dealing with the blockchain technology that cryptocurrencies are based on.

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