Big crypto crash: Bitcoin tanks below $20,000 for first time since 2020
The world’s largest cryptocurrency Bitcoin has tanked below the all-important $20,000 threshold for the first time since 2020, sending shockwaves across crypto world.
The great fall comes alongside rising interest rates, as well as central banks’ desperate attempts to curb the swelling 40-year high inflation rates.
Bitcoin is down more than 50 per cent since the start of the year from over $47,000, due to a crypto winter that industry experts warn will drag prices down even lower and spark an “Armageddon.”
It’s not just Bitcoin: the plunge has been felt across the biggest crypto names, with Ethereum and Binance falling by over eight per cent each in the last 24 hours, according to CoinDesk.
As reported by City PM earlier this week, miners have cut back on producing more Bitcoin as falling prices reduced the money they made for successfully mining the cryptocurrency.
Mining involves using powerful computers to solve complicated puzzles that provide miners with new Bitcoin.
The total revenue miners made dropped by almost $5 million this month, from about $27 million to almost about $22.5 million, according to data by Blockchain.com.