Bitcoin fell below $18,000 on Saturday, dropping to its lowest level since November 2020.
The weekend was complicated for the crypto ecosystem. While last week was choppy, bitcoin has so far held steady above $20,000. But this weekend, bitcoin has largely fallen below this symbolic bar in the eyes of investors and individuals.
Specifically, on Saturday evening around 10:50 p.m., bitcoin hit its lowest point since November 2020, trading around $17,750, losing more than 74% of its value since its all-time high of $69,000 last November. .
The cryptocurrency then rallied on late Sunday morning, trading at just over $19,293 before rising above $20,000 in the early evening.
But the cryptocurrency is still very volatile: this Monday at 9:45 a.m., bitcoin is trading again a little below 20,000 dollars, at 19,990 dollars. In the space of a week, bitcoin has lost more than 20% of its value, and its capitalization amounts to 380 billion dollars, against a little more than 1000 billion capitalization last November.
Ether holds up a little better than bitcoin
For its part, ether, the second cryptocurrency in terms of capitalization, also fell sharply by trading at less than 900 dollars this weekend, stabilizing this Monday at 9:30 a.m. around 1,070 dollars. In the space of a week, ether lost 17% of its value, doing a little “better” than bitcoin in a week.
What happened? Since the last crypto-crash with the collapse of the Terra blockchain, the crypto ecosystem remains highly weakened and this is starting to have strong repercussions on certain companies. For a week, the Celsius cryptocurrency lending platform blocked funds from its 1.7 million users. The Finblox lending platform also announced new binding terms for its users. At the same time, one of the largest crypto investment funds Three Arrow Capital, greatly destabilized by the storm in the cryptocurrency market, is evaluating a rescue plan.
At the same time, monetary tightening with rate hikes decided by the US Federal Reserve and, to a lesser extent, by the European Central Bank (ECB) is putting the most risky assets under pressure. Silver is more expensive and liquidity is fleeing to the markets. In a gloomy international economic context, the cryptocurrency market is also highly correlated to traditional financial markets, and in particular to the American technology index Nasdaq. As the Nasdaq fell again last week, it dragged down the cryptocurrency market which remains much smaller and volatile to this day.
Other more specific elements have been added since this weekend on the cryptocurrency market, in particular on the Solend protocol, which BFM Crypto will not fail to decipher.