Bitcoin has dropped by more than 10% this week, dipping below $25,000, which is the first time it fell since December 2020, according to a report by The Independent.
A slew of Price Dips
The news is the most recent in a slew of price dips for the cryptocurrency, which has lost more than 60% of its value in the last seven months.
In fact, the whole crypto market has also plummeted, dropping more than $400 billion in the last week to go below $1 trillion.
Various popular cryptocurrencies, such as Ethereum (ETH), Dogecoin (DOGE), Cardano (ADA), and Solana (SOL), suffered even greater losses than bitcoin, plunging between 15 and 25% in just 24 hours.
Over the last day, none of the top 100 cryptocurrencies on CoinMarketCap witnessed any gains, indicating one of the most thorough drops in the crypto market yet.
Analysts assume that the market drop corresponded with a comparable capitulation of tech stocks in recent days, implying that the two are reacting in synch to external market pressures.
Cryptocurrencies have historically not moved in lockstep with traditional assets such as equities, according to Simon Peters, an analyst at the online trading platform eToro, in a statement to The Independent.
However, Peters claimed that in recent years, the correlation between the two has become closer than ever.
"Now the clearest signal yet that crypto-assets such as bitcoin and ether are moving in lockstep with equities has flashed, as inflation worries have sent stocks and crypto tumbling," Peter stated.
He went on to explain that the reasons for this are numerous but that a large part of it is due to institutional investors that similarly calibrate their risk assets, whether they are tech stocks or bitcoin.
"Due to Extreme Market Conditions"
Customers of crypto lender Celsius were recently warned that they would be momentarily unable to withdraw funds from the site due to the liquidations.
"Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts," the company, formerly valued at $3.25 billion from a funding round last year, announced in a blog post on Monday.
The company stated that they are taking the required steps for the benefit of its community to stabilize liquidity and operations while preserving and protecting assets.
The action comes less than a month after Terraform Labs' Luna and UST tokens crashed severely, wiping out more than $40 billion in investor funds.
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Written by Joaquin Victor Tacla
