Crypto Market Bleeds, With Bitcoin Falling Below $24k

Crypto crash has caused FUD (fear, uncertainty, doubt) among investors

Today, the cryptocurrency market suffered a panic sell-off following new highs reported in US inflation data. Moreover, global market fears added to the vulnerabilities of cryptocurrencies. 

As a result, Bitcoin's price fell by $24,000, dropping 14% today. This is Bitcoin's lowest level since December 2020. Ether, the second-largest cryptocurrency, lost over 15%, hovering around $1,200. Due to the bloodbath across the crypto market, the total market capitalization of all cryptocurrencies fell below $1 trillion on Monday morning according to CoinMarket Cap.

As if that hadn't been enough, investors were also hit by another blow today when crypto lending platform Celsius announced that it was pausing all withdrawals and transfers between accounts. The 'extreme market conditions' forced the firm to take this step, it said.

Key Takeaways

  • Bitcoin fell below $24,000 and Ether dropped below $1,300.
  • A new high in inflation triggered the current sell-off in the crypto market.
  • The crypto world suffered another blow when crypto lending firm Celcius announced to pause all withdrawals and transfers between accounts.

The current trends show investors are staying away from risky assets because of global market conditions and inflation. The tightening monetary policy of the Fed has wreaked havoc on cryptocurrencies in particular because of its volatile nature. On top of that, the collapse of Terra (LUNA) and TerraUSD (UST) has caused investors a great deal of anxiety.

The Bottom Line

Back-to-back bad news from the crypto world has caused FUD (fear, uncertainty, and doubt) among the investors. Crypto enthusiasts took to Twitter using #cryptocrash to express their anxiety, asking when this bloodbath would end. Experts believe it might get worse.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. BLS. "Consumer Price Index Summary."

  2. Reuters: ''Dollar higher as risky assets tumble; yen rebounds from 1998 lows''
  3. Coinmarket Cap. "Today's Cryptocurrency Prices by Market Cap."

  4. Celsius: ''A Memo to the Celsius Community''
  5. Celsius. ''A Memo to the Celsius Community''
  6. MarketWatch: ''Bitcoin tumbles through $24,000 in crypto crash. This chart shows how much worse a selloff could get.''
Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Service
Name
Description