Over the past 24%, Bitcoin prices have fallen more than 5% after recovering some of the losses during the day. At some point, the price of BTC had dropped below $20,200 and was headed for the $20,000 mark not seen since December 2020.
The global crypto market has declined 5.32% according to CoinMarketCap over the past day as investors flee digital assets. The selloff started with the crash of TerraUSD and Luna in May, casting doubt over the entire industry. This fear was further stoked by a worse than expected inflation report in the US that spooked investors away from nearly all financial markets.
Embattled crypto companies
The most recent slump was caused by Celsius after the company stopped processing customer withdrawals on Wednesday. Celsius is a US-based crypto lender, so when the company halted withdrawals and transfers between accounts, fear spread that the company had become insolvent.
The Wall Street Journal has reported that Celsius has hired restructuring lawyers to look for possible financing options and other strategic alternatives. On a positive note, MicroStrategy claims it hasn’t received a margin call yet, which was expected once Bitcoin prices fell below $21,000.