Bitcoin has plunged below $20,000 and Ethereum dropped below $1,000 as the crypto market crash deepened. The fall in Bitcoin's value is the highest in the past 18 months. Bitcoin is currently trading at $ 19,197 and Ethereum fell to $986 early in the morning.
Currently, the traditional market and the crypto market are witnessing massive selling. In the past 24 hours, Bitcoin's value dropped by 9.5%.
The crypto panic â which began a few weeks ago with the Terra ecosystem collapse and then spread to the Celsius platform â has moved on to hedge fund Three Arrow Capital, which reportedly had its collateral liquidated by crypto lender BlockFi, according to CoinDesk.
Experts Anticipated Massive Fall In Bitcoin's Value
Experts have previously anticipated that if Bitcoin's value going below $20,000 will result in massive sell pressure.
Arthur Hayes, the former CEO and co-founder of BitMEX stated last week that if these levels break '$20k BTC & $1k ETH' we can expect massive sell pressure in the spot markets as dealers hedge themselves. "We can also expect that there will be some OTC dealers and that will be unable to hedge properly and might go belly up."
Crypto Lenders Suspend Withdrawals
Celsius, a crypto lender, last Sunday barred customers from withdrawing expressing concerns that the company would not have sufficient funds to cover a run on the platform.
Similarly, Babel Finance -- the second largest digital-asset lender -- froze their withdrawals.
Babel Finance said that it faces unusual liquidity pressure at the time of the worsening market and to avoid further deterioration of the situation and to best protect the customers from losses.
"During this period, the redemption and withdrawal functions of Babel Finance products will be suspended and the recovery time will be notified separately. We apologize sincerely for the inconvenience caused to customers," the company said in a statement.
Currently, all cryptocurrencies' total market capitalization is around $853 billion, which is nearly 5% down in the last 24 hours.