Bitcoin fell below the $20,000 level on Saturday to its lowest point in 18 months, extending its slide as investors fretted over mounting troubles in the industry and as the general pullback in prices continued. higher-risk assets.

The digital currency sector has been hit hard this week after crypto lending company Celsius froze withdrawals and transfers between accounts, while crypto companies began laying off employees and there were reports that a crypto hedge fund had problems.

It has come alongside a slump in stock markets, with US stocks suffering the biggest weekly percentage decline in two years on fears of rising interest rates and the growing likelihood of a recession.

Bitcoin, the largest cryptocurrency, sank 7.3% to $19,855, after hitting $18,732, its lowest level since December 2020. It has plunged 59% this year, while Ethereum -backed ether, the rival cryptocurrency, has plunged 73%. In 2021, bitcoin peaked at over $68k.

“Breaking $20k shows that confidence has collapsed for the crypto industry and the latest strains are being seen,” Edward Moya, senior market analyst at OANDA, said on Saturday. “There are too many cryptocurrencies and markets that are under tremendous financial pressure due to movements in borrowing costs.”

The sector has also suffered losses after companies including Coinbase Global, Gemini and Blockfi said they would lay off thousands of employees as investors dump risky assets. The drop is hurting retail investors who bought the asset.

“There are a lot of people who are going to be scarred forever,” Moya said, referring to retail shoppers. “However, there are still a lot of people who were about to enter the space and there is still interest. Interest only exploded last year and most people started small.”

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