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Bitcoin Blues: Cryptocurrency Falls to Near $20K

Bitcoin falls
Bitcoin cryptocurrency dropped in intraday trading Wednesday and is off nearly 70% from its November 2021 high. Bitcoin

Bitcoin is biting it. The digital currency continued its downward spiral on Wednesday, dropping to just over $20,000 (around 19,200 euros) in intraday trading.

The cryptocurrency cratered from its all-time high just seven months ago when Bitcoin stood at over $57,000 (about 54,700 euros) and the likes of Kim Kardashian, Reese Witherspoon, Matt Damon, Justin Bieber, and other celebrities were hailing digital currency as the next big thing.

Early Wednesday, Bitcoin fell to $20,166 (19,382 euros), according to CNBC. It rose slightly after that.

Bitcoin, a cryptocurrency behemoth that is now traded internationally, has plummeted 70 percent since November.

This morning’s bad news, however, continued Bitcoin’s recent trajectory, as the value of the cryptocurrency reached a 22-month low in early May.

Approaching the $20,000 mark represents a threshold of sorts for Bitcoin, Charlie Morris, founder of digital asset management firm ByteTree, told CNBC. At that price, he said, the currency “has made no money since the 2017 high, but that disguises the outsized returns over all prior time frames.”

Bitcoin fall mirrors industry

Bitcoin’s fall comes as the prices of cryptos in general have sunk amid an overall volatile market. U.S. Treasury yields have jumped and tech stocks have cratered, and now, the Federal Reserve is expected to raise interest rates.

Ether—also referred to as Ethereum—has dropped in value recently, as well. The sharp drop in crypto prices has resulted in anxiety amongst traders and the public alike; Forbes recently reported that the crypto market has lost a massive sum of over $200 billion due to recent drops in value.

This week, cryptocurrency exchange platform Coinbase laid off more than 1,000 employees, amounting to about 18 percent of its workforce.

Last month, European Central Bank President Christine Lagarde said crypto currencies are “based on nothing” and should be regulated to steer people away from speculating on them with their life savings.

And former Greek Finance Minister Yanis Varoufakis recently told The Greek Reporter that Bitcoin “can never be a currency, and it should never be a currency.” He said “Bitcoiners celebrate Bitcoin because it is not state money, but if you take this to its natural conclusion, it means that it can never be a currency.” The supply of Bitcoin can’t be increased, he said, “because it is of fixed supply.”

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