Illustrative image of two memory bitcoins with a green background.
Artur Widak | Nurphoto | Getty pictures
Bitcoin briefly fell below $ 21,000 on Tuesday in Asia, before jumping back slightly and continuing to plummet as investors sold risky assets.
The world̵[ads1]7;s largest cryptocurrency fell almost 14% in the last 24 hours, while ethereum fell more than 12% in the same period, according to Coinbase data.
Bitcoin swung at around $ 21,800 on Tuesday in Asia.
“Everything is burning right now, be it stocks, whether it’s cryptocurrencies or something,” said Nirmal Ranga, head of trading and technical analysis at the crypto exchange ZebPay.
“What you see in the market is fear, uncertainty and doubt. Technically, the markets look oversold, and there must be a floor that we will hit in bitcoin in the future,” he told CNBC’s Street Signs “Asia.”
Crypto-assets were hammered out on Monday when trading platforms such as Celsius and Binance stopped withdrawals, and some companies cut jobs.
Celsius said withdrawals, swaps and transfers between accounts would be halted due to “extreme market conditions” and that the move was intended to “stabilize liquidity and operations.”
“We are taking this action today to put Celsius in a better position to meet its withdrawal obligations over time,” the company said in a note.
Meanwhile, Binance, the world’s largest cryptocurrency exchange, stopped bitcoin withdrawals for more than three hours “due to a deadlocked transaction that caused a backlog.”
The market value of cryptocurrencies fell below $ 1 trillion on Monday for the first time since February 2021, data from CoinMarketCap showed. Around $ 200 billion has been wiped out of the market in recent days.
Crypto sales come as investors largely rejected risky assets against a backdrop of fears of a potential global recession as major central banks around the world raise interest rates to curb inflation.
Politicians at the US Federal Reserve are now considering the idea of an interest rate increase of 75 basis points later this week, according to CNBC’s Steve Liesman. This is greater than the increase of 50 basis points many traders had expected. The Wall Street Journal reported the story first.
Rising prices tend to make future earnings for growth assets look less attractive.
Bitcoin has fallen almost 70% from a record high in November 2021.