Crypto investors are grappling with aggressive interest rate hikes from the U.S. Federal Reserve and a worsening liquidity crunch.
Bitcoin dropped below the $20,000 mark on Saturday, extending a brutal slide in cryptocurrencies. The price of bitcoin fell 9% in 24 hours to $19,217.81, according to Coin Metrics data. The last time bitcoin fell below that level was December 2020. Ether, the second-largest token, plunged 10% to $997.75, its lowest level since January 2021. Crypto investors are grappling with aggressive interest rate hikes from the U.S. Federal Reserve and a worsening liquidity crunch that has pushed major players into financial difficulty. The Fed on Wednesday hiked rates by 75 basis points, its biggest increase since 1994.
