The cryptocurrency industry was on edge on Monday as bitcoin struggled to stay above a key level. Along with investors fearing that problems at major crypto players could release a wider market shakeout.
Bitcoin had dropped on Saturday to as low as $17,592.78, falling below $20,000 for the first time since December 2020. It has lost almost 60% of its value this year and 37% this month alone in the cryptocurrency sector’s latest downfall.
Its fall follows problems at several major industry players. This has forced other crypto investors to sell their holdings to meet margin calls and cover losses.
U.S. based lender Celsius Network this month said it would suspend customer withdrawals. In a blog on Monday, Celsius said it would continue working with regulators and officials. But this would pause its customer Q&A sessions.
Bitcoin’s moves have tended to follow a similar pattern to other risk assets such as tech stocks. The overall crypto market capitalization is roughly $877 billion. According to price site Coin market cap, down from a peak of $2.9 trillion in November 2021.
