Bitcoin Dives Below US$25k! Will BTC Really Disintegrate into Oblivion?
Things are not looking good for Bitcoin as the asset plummeted below US$25,000 on Monday
Bitcoin (BTC) plummeted below US$25,000 on Monday amid weakness in the macroeconomic environment and systemic risks from within the crypto market, as data shows. The asset has slid for nearly 12 straight weeks, falling from nearly US$49,000 in March 2022 to under US$25,000. It showed some signs of bottoming out in mid-May, but worrying U.S. inflation data, released last week, did little to cushion falling sentiments. The consumer price index (CPI), the most widely tracked benchmark for inflation, rose 8.6% on a year-over-year basis in May, topping expectations that it would decline to 8.2% from April’s 8.3%, as reported by Coindesk.
Such data contributed to a fall in Asian markets on Monday. Hong Kong’s Hang Seng fell nearly 3.5%, Japan’s Nikkei 225 fell 3.01%, and India’s Sensex dropped 2.44%. Futures of U.S. technology-heavy index Nasdaq opened 2% lower, while S&P 500 fell 1.65%. According to price charts, Bitcoin had strong support at the US$29,000 mark, but the support falling below that level now means that the cryptocurrency could drop to its 2017 high of nearly US$20,000. Readings on the Relative Strength Index (RSI) – a tool used by traders to calculate the magnitude of an asset’s price move – dropped under 30, suggesting a reversal could be on the way as short-term buyers react to technical data.
Elsewhere, crypto lender Celsius paused withdrawals citing “extreme market conditions,” fueling Crypto Twitter concerns that the company may not have enough liquidity to pay out its depositors.
Crypto lending service Celsius announced early Monday it would pause withdrawals, citing “extreme market conditions.” The company announced it would also pause its swap and transfer products, according to a blog post. It did not provide a timeline for resuming withdrawals. “We are working with a singular focus: to protect and preserve assets to meet our obligations to customers. Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap, and transfers between accounts as quickly as possible. There is a lot of work ahead as we consider various options, this process will take time, and there may be delays,” the blog post said. The announcement comes on top of Celsius telling nonaccredited investors that they could no longer transfer funds.
The company also recently replaced its chief financial officer, after former Chief Financial Officer Yaron Shalem was arrested by Israeli police in 2021. The price of Celsius’s CEL token fell over 50% after the news came out. The company has also faced regulatory issues, with law enforcement entities issuing cease-and-desist orders against it. Crypto reporter Colin Wu, who goes by @WuBlockchain on Twitter, posted on Monday that Celsius has transferred about 104,000 ETH to FTX in the past three days.