Bitcoin continues to collapse – “Trust has collapsed”

Bitcoin continues to collapse – "Trust has collapsed"

Bitcoin continues its descent, the price falls below $18,000. Analysts speak of a collapse.

Cryptocurrency Bitcoin continued its recent slide on Saturday, falling well below the key $20,000 mark. At times, the oldest and best-known cyber currency cost just $17,649, about 14 percent less than on Friday and the lowest it has been in 18 months.

In November, a bitcoin was almost four times as expensive at around $68,000, and the value has fallen by more than 60 percent since the beginning of the year. The cryptocurrency Ethereum lost 73 percent in the period. According to the industry service CoinMarketCap.com, the combined market value of all almost 20,000 cyber currencies had recently fallen below the one trillion dollar threshold.

Analyst: There are too many cryptocurrencies

“The breach of $20,000 shows that confidence in the crypto industry has collapsed,” market analyst Edward Moya of The Americas OANDA said on Saturday. “There are too many cryptocurrencies and crypto exchanges that are under tremendous financial pressure given the cost of borrowing,” he said, referring to rising interest rates. Many small investors who had invested their money in cryptocurrencies would now be permanently scared off. The slide in prices is accompanied by significant losses on the global stock markets due to fears of a recession.

Jochen Stanzl, chief market analyst at CMC Markets, referred to a general sell-off in the risk markets just a few days ago. If Bitcoin does not rise back to just under $33,000 at the end of the month, there is a risk of another crash down to the 10,000 mark from a technical point of view.

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