Bitcoin plummeted below $24,000 on Monday, its lowest level since December 2020, as investors shunned the cryptocurrency amid a broader sell-off in risk assets, according to international news outlets.
Bitcoin, Ethereum, and the other major cryptocurrencies all fell over the weekend, wiping off some of the week’s gains. In just 24 hours, the global crypto market valuation has dropped by 12% to $970 billion.
Meanwhile, a crypto lending company called Celsius has blocked withdrawals for its customers, increasing fears of a wider market catastrophe.
The bitcoin market lost more than $200 billion over the weekend and into Monday morning. The cryptocurrency market capitalization fell below $1 trillion on Monday for the first time since February 2021, according to CoinMarketCap data.
Bitcoin, the world’s largest cryptocurrency, momentarily dropped below $24,000 during the early hours of trade today, according to CoinDesk data, before swiftly surging back over that level.
BNB is down 22% this week, Cardano (ADA) is down 24%, XRP is down 18%, Solana (SOL) is down 31%, Dogecoin (DOGE) is down 28%, Polkadot (DOT) is down 28%, Avalanche (AVAX) is up 35%, and Polygon (MATIC) is down 25%.
The crypto market has been turbulent all year after a tremendous bull run in 2020 and 2021, but the current Crypto Winter began in earnest in the first week of May, when major currencies and stock markets throughout the world plunged.
Bitcoin has been marketed as an inflation hedge for years, but it has underperformed expectations in 2022, hitting its most concerning level of correlation with the S&P 500 and Nasdaq since 2020.