Bitcoin Plunges Below $23,000 as Crypto Market Cap Drops Under $1 Trillion
Bitcoin falls to its lowest level since December 2020 amid broader risk asset sell-offs and fears sparked by Celsius freezing customer withdrawals.
Bitcoin drops below $23,000 on Monday to hit its lowest level since December 2020, dragging the total cryptocurrency market capitalization under $1 trillion for the first time since early 2021. The world's largest cryptocurrency experiences a steep 15% loss as investors rapidly exit risk assets ahead of an expected U.S. Federal Reserve interest rate hike.
Market panic intensifies as crypto lending firm Celsius pauses customer withdrawals, sparking fresh fears of financial contagion following the collapse of the terraUSD and luna tokens in mid-May. This lending freeze adds significant stress to an already fragile digital asset ecosystem that is heavily correlated with sharp recent declines in the tech-heavy Nasdaq index.
Analysts warn that the downward trend is likely not over, pointing to rampant inflation and aggressive Fed rate hikes as primary drivers of the continued bearish sentiment. Because bitcoin currently sits roughly 63% below its all-time high, experts suggest the cryptocurrency could see even lower prices in the coming months if the central bank maintains its strict monetary policies.