Bitcoin plunges toward $20,000 as crypto meltdown continues

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• Bitcoin’s price plunged very close to $20,000 Wednesday as cryptocurrencies sank deeper into the red.
  
• Investors are worried about the impact of climbing inflation and aggressive rate hikes on the crypto market.
  
• There are fears a possible liquidation of crypto lending firm Celsius could bring down some other major players.
  

The sell-off in cryptocurrencies deepened even further on Wednesday, with bitcoin sinking very close to the key level of $20,000.

The price of bitcoin plunged 9% in 24 hours to around $20,208, according to data from Coin Metrics. The world’s largest digital currency is down more than 70% since the peak of the crypto craze in November 2021.

Bitcoin and other digital tokens are in free fall as fears of climbing inflation, aggressive interest rate rises and liquidity issues at a key player in the crypto space have plagued crypto markets.

The Federal Reserve is widely expected to hike rates by 75 basis points this week, a move that has spooked stocks and other risky assets — including crypto.

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Bitcoin briefly dropped below $17,800 as sell-off accelerates — here’s what happened

• Bitcoin fell to about $17,749, and ether fell to about $897 on Saturday afternoon, as the sell-off in the crypto market accelerates.
  
• Bitcoin bounced back to around $18,955 and ether was trading at about $955 just after 8 p.m. ET.
  
• Bitcoin peaked at $68,789.63 in November.
  

Bitcoin plunged to about $17,749 and ether fell to about $897 at around 4:15 E.T. on Saturday afternoon, as the sell-off in the crypto market accelerates. The world’s two most popular cryptocurrencies are down more than 35% in the past week, as both breach symbolic price barriers.

Bitcoin bounced back to around $18,955 and ether was trading at about $995 just after 8 p.m. ET.

The carnage in the crypto market is partly caused by pressure from macroeconomic forces, including spiraling inflation and a succession of Fed rate hikes. We have also seen these blue chip cryptos track equities lower. It doesn’t help that crypto firms are laying off large swaths of employees, and some of the most popular names in the industry are facing solvency meltdowns.

Bitcoin peaked at $68,789.63 in November. Ether peaked at $4,891.70 that same month. Bitcoin last traded this low around December 2020.
Here’s how we got here.

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