Bitcoin tumbles to new 18-month low

June 15, 2022 - 5:13 PM
A representations of cryptocurrency Bitcoin is seen in front of a stock graph and U.S. dollar in this illustration taken, January 24, 2022. (Reuters/Dado Ruvic/Illustration/File Photo)

 Bitcoin fell on Wednesday to a new 18-month low, dragging down smaller tokens with it, as the recent tumble in crypto markets showed no sign of letting up.

The world’s largest cryptocurrency BTC=BTSPfell as much as 6.3% to $20,715.69, its lowest since December 2020.

Bitcoin has lost around 28% since Friday and more than half of its value this year. Since its record high of $69,000 in November, it has slumped around 70%.

The token has tumbled after U.S. crypto lender Celsius this week froze withdrawals and transfers between accounts, stoking fears of wider fall-out in digital asset market.

READ: No let up in crypto slide as Celsius halt leaves investors ‘panicking’

Expectations of sharper U.S. Federal Reserve interest rate hikes to combat soaring inflation in the world’s biggest economy have also heaped pressure on risky assets from cryptocurrencies to stocks.

Smaller cryptocurrencies, which tend to move in tandem with bitcoin, also fell. Ether ETH=BTSP, the second largest token, fell as much as 9.4% to $1,090.

—Reporting by Tom Wilson