Bitcoin declines below $21,000 shortly as the crypto sell-off resumes

June 15, 2022: -On Tuesday, Bitcoin dropped below $21,000 in Asia before bouncing back slightly, continuing its plunge as investors sold off risk assets.

The world’s biggest cryptocurrency decreased around 10% in the last 24 hours, while ethereum tumbled over 6% over a similar period, according to Coinbase data. Bitcoin was previously trading at $22,594.50 at 2.53 a.m. ET.

“Everything is on fire right now, be it the equities, be it the crypto assets or anything,” said the head of trading and technical analysis at ZebPay, Nirmal Ranga.

“What you see in the market is fear, uncertainty, and doubt. Technically, markets peek oversold, and there has to be some floor that we’re going to hit in bitcoin in the coming future,” he added to CNBC.

On Monday, Crypto assets were beaten as trading platforms like Celsius and Binance stopped withdrawals, and a few companies cut jobs.

Celsius said leaves, swaps, and transfers amid accounts would be halted as of “extreme market conditions” and that the move was meant to “stabilize liquidity and operations.”

“We are taking this action today to put Celsius in a better position to honor its withdrawal obligations,” the company said.

Therefore, the world’s largest crypto exchange known as Binance halted bitcoin exits for over three hours “due to a stuck transaction causing a backlog.”

The market capitalization for cryptocurrencies declined below $1 trillion for the first time on Monday since February 2021, data from CoinMarketCap revealed. About $200 billion has been brushed off the market in recent days.

The crypto sell-off reaches investors greatly shun risky assets against worries over a potential global recession as major central banks around the world hike interest rates to tame inflation.

The Wall Street Journal said the story instead. According to CNBC, policymakers at the U.S. Federal Reserve are currently contemplating the idea of a 75-basis-point increase later this week. That’s more significant than the 50-basis-point hike many traders had expected.

Increasing rates tend to make prospective earnings for growth investments look less attractive.