While the present global recession is still causing market turmoil, cryptocurrencies appear to have suffered a significant knock, especially following last week’s decline.
The largest cryptocurrency in the world, Bitcoin, fell below $20,000 last Saturday, reaching its lowest valuation in 18 months. This continued its decline as investors shied away from riskier investments due to rising interest rates.
The price of the digital currency is presently “going to zero,” according to a report in the Chinese state-run publication Economic Daily. This occurs at a time when market uncertainty for cryptocurrencies is rife.
The price of a single Bitcoin had been fluctuating around the $21,000 mark up until this past Saturday, but investor faith in the asset is dwindling.
According to the Economic Daily report, “Bitcoin is little more than a string of digital codes, and its returns mostly come from purchasing low and selling high.”
Earlier this month, the cost of Bitcoin had fallen to a new low of $17,958. The same thing happened when the currency fell last year when China tightened its grip on bitcoin mining and outlawed all cryptocurrency transactions.
Over the past two years, the number of cryptocurrency lenders has exploded, drawing in tens of billions of dollars in bitcoin, ether, and other coins that they either lent out or invested in.
