Bitcoin drops to its lowest level in 18 months

Bitcoin slumped on Wednesday to an 18-month low, dragging smaller cryptocurrencies with it, as the recent slide in cryptocurrency markets showed no sign of stopping.

Bitcoin fell 6.3% to $2,0715.69, its lowest since December 2020.

Bitcoin has lost about 28 percent of its value since Friday, and more than half its value this year. Since hitting a high of $69,000 in November, it has fallen by nearly 70 percent.

Bitcoin plunged after US crypto lender Celsius this week froze withdrawals and transfers between accounts, raising fears of broader repercussions in the digital asset market.

Expectations of more US interest rate hikes, aimed at combating soaring inflation in the world’s largest economy, have increased pressure on risky assets from cryptocurrencies to stocks.

Smaller digital currencies, which are affected by bitcoin’s movements, also fell, with Ether the second-largest cryptocurrency down 9.4 percent to $ 1,090.