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Bitcoin is in the midst of an intense crypto meltdown as its value dropped below $20,000 on Saturday.
The price of bitcoin fell more than 6% in 24 hours. The last time such a slide happened was in December of 2020. Other cryptocurrencies did not fare any better.
Ether, the second-largest, plunged 7% to its lowest level since January 2021. It is now sitting below $1,000.
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The crypto slides have been attributed in part to interest rate hikes from the U.S. Federal Reserve that pushed interest up by 0.75–the biggest since 1994. The stock markets have also felt the brunt of the new interest rate hikes, with stock values dropping all over the world.
There was also the $60 billion collapse of two major tokens last month. Terra, a coin meant to be worth $1, has now become a fraction of a cent.
Crypto lender Celsius, worth $3 billion, locked users out of their funds with fears heightening that it may face insolvency. The company stated that it is “acting in the interest of our community.”
Another major hit to the crypto industry is the $10 billion hedge fund, Three Arrows Capital. It is reportedly on the brink of insolvency after the crypto plunge.
Coinbase also recently announced that it would be laying off at least 1,100 employees, largely in part to the crypto meltdown.
