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Bitcoins falls below US$20,000 for first time since 2020 amid financial turbulence
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The price of Bitcoin, the most popular cryptocurrency, fell below US$20,000 for the first time since late 2020 on Saturday, in a fresh sign that the selloff in cryptocurrencies is deepening.
Dropping as much as nine per cent to less than $19,000, according to CoinDesk, this plunge meant a fall below a psychologically important threshold. It has since recovered slightly after the weekend volatility.
The last time Bitcoin was at this level was November 2020, when it was on its way up to its all-time high of nearly $69,000. Bitcoin has now lost more than 70 per cent of its value since reaching that peak.
Ethereum, another widely followed cryptocurrency that’s been sliding in recent weeks, took a similar tumble on Saturday.
It’s the latest sign of turmoil in the cryptocurrency industry amid wider turbulence in financial markets. Investors are selling off riskier assets because central banks are raising interest rates to combat quickening inflation.
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