On Wednesday, the Bitcoin price has fallen to its lowest level in the past 18 months. Bitcoin dropped as much as 10% to an intraday low of $20,166, according to Coinbase. It last traded at $21,658, down about 3%. The world’s largest cryptocurrency has tumbled nearly 70% since the peak of the crypto craze in November 2021.
Cryptocurrencies have been hit hard this week after the US crypto lending firm Celsius blocked users from accessing their funds, stoking fears of a wider collapse in the crypto market that was already shaken by the crash of TerraUSD and Luna tokens last month.
Digital tokens are in free fall as fears of escalating inflation, soaring interest rates, and liquidity issues at a key player in the crypto space have plagued crypto markets. The Federal Reserve is expected to raise interest rates by 75 basis points this week, a move that has spooked stocks and other risky assets, including cryptocurrencies.
According to CoinMarketCap data, the value of the global crypto market has fallen below $900 billion, down from a peak of $2.97 trillion in November. Smaller cryptocurrencies, which tend to move in tandem with Bitcoin, also dropped. Ether, the second largest token, dropped 12% to $1,045, a new 15-month low.
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