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The price of Bitcoin has broken below the key threshold of $ 20,000 for the first time since November 2020, which has triggered a new wave of sales and deepened the crisis facing the digital asset sector.

The largest cryptocurrency, which serves as a benchmark for the broader cryptocurrency market, fell to below $ 18,000 on Saturday, a fall of about 14 percent, before bouncing back slightly. That took it below the peak level of previous bull run in crypto markets in 2017 and wiped out years of gains for long – term holders.

Traditional financial markets were shaken this week after three major central banks, led by the US Federal Reserve, boosted borrowing costs as part of a bid to reduce severe inflation. Global equities provided the worst week since the dark days of the pandemic in March 2020 as traders feared the aggressive move could spur global growth or even trigger a recession.

The cryptocurrency market is under severe pressure as the race for returns shifts due to the massive stimulus efforts of central banks and governments at the height of the sudden pandemic.

Investors and executives have been anxiously watching the price of bitcoin for the past few days, fearing that a fall below $ 20,000 could encourage major leverage pledges to be forced to liquidate markets, putting more pressure on the price and deteriorating on the credit crunch that major crypto lenders have already hit. and traders.