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Selling continues, Bitcoin and Ethereum fall

Illustrative image of two commemorative bitcoins on a green background.

Arthur Widak | Nurphoto | Getty Images

Bitcoin briefly fell below $21,000 on Tuesday in Asia before rebounding slightly, continuing to fall as investors sold risky assets.

The world’s largest cryptocurrency has fallen nearly 14% in the past 24 hours, while Ethereum has fallen more than 12% in the same period, according to data from Coinbase.

Bitcoin was hovering around $21,800 on Tuesday in Asia.

“Everything is on fire right now, be it stocks, be it crypto assets or whatever,” said Nirmal Ranga, head of trading and technical analysis at crypto exchange ZebPay.

“What you see in the market is…fear, uncertainty and doubt. Technically the markets seem oversold and there has to be a bottom that we are going to hit in bitcoin in the near future,” a- he told CNBC’s “Street Signs.” Asia.”

Crypto assets were hammered on Monday as trading platforms such as Celsius and Binance halted withdrawals and some companies cut jobs.

Celsius said withdrawals, exchanges and transfers between accounts would be halted due to “extreme market conditions” and the move was intended to “stabilize liquidity and operations”.

“We are taking this action today to put Celsius in a better position to meet, over time, its withdrawal obligations,” the company said in a memo.

Meanwhile, Binance, the world’s largest crypto exchange, halted bitcoin withdrawals for more than three hours “due to a stalled transaction causing a backlog.”

Cryptocurrency market capitalization slipped below $1 trillion on Monday for the first time since February 2021, according to data from CoinMarketCap. About $200 billion has been wiped from the market in recent days.

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The crypto selloff comes as investors have largely avoided risky assets amid fears of a possible global recession as major central banks around the world raise interest rates to tame inflation.

US Federal Reserve policymakers are now considering the idea of ​​a 75 basis point rate hike later this week, according to CNBC’s Steve Liesman. That’s more than the 50 basis point rise that many traders were expecting. The Wall Street Journal reported the story first.

Rising rates tend to make future income from growth assets less attractive.

Bitcoin has fallen nearly 70% from its November 2021 all-time high.

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