Bitcoin dips below $20,000 over selloff fears

Photo Credit: AP.

The value of bitcoin Saturday dipped below $20,000 following renewed fears over deepening sell off. The most popular cryptocurrency dropped by 9.7% to less than $18 600 by late afternoon on the East Coast, according to the cryptocurrency news site CoinDesk, The Associated Press reports. 

Reports further revealed that the ever fluid cryptocurrency value plunged below $18 000 at some point on Saturday.

The Associated Press reported that the last time bitcoin was at that level was in November 2020, when its value accelerated rapidly to reach nearly $69 000, according to CoinDesk.

With this development the value of Bitcoin has now dropped below 70% of its peak.

Other cryptocurrencies were not spared as Ethereum’s value tanked tremendously on Saturday.

Cryptocurrency is considered a risky asset due to its fluid nature. This is the reason most businesses and individuals are selling them off as central banks around the world raise interest rates in a bid to combat rising inflation which if not properly handled poses the risk of recession.

The Associated Press reported that the overall market value of cryptocurrency assets has fallen from $3 trillion to less than $1 trillion, according to coinmarketcap.com, which tracks crypto prices. On Saturday the company data showed the global crypto market value stood at $816 billion.

There are increasing calls by industry experts to regulate the nose-diving industry whose value continues to tumble at the least shakeup. The U.S. Senate plans to regulate the digital industry following the introduction of a bipartisan legislation last week.