Finance: why cryptocurrencies are collapsing

For the first time since the end of 2020, bitcoin fell below the symbolic bar of 20,000 dollars (17,599 dollars) on Saturday. denisismagilov – stock.adobe.com

ANALYSIS – Market reversals are commonplace with cryptocurrencies, which alternate up and down cycles. But the current upheavals seem more worrying than usual.

The fall seems endless. Since November, the price of bitcoin, the oldest and most widespread cryptocurrency, has been falling steadily. The movement accelerated in May, then last week (-25% in seven days, unheard of) and during the weekend, bringing all of these currencies of a new kind in its wake.

For the first time since the end of 2020, bitcoin fell below the symbolic bar of 20,000 dollars (17,599 dollars) on Saturday, before recovering on Monday to 20,550 dollars. Observers are watching the $20,000 threshold closely, below which institutional investors begin to close out their positions.

The current debacle, which some are calling a “bloodbath,” is painful for bitcoin holders: Year-to-date, the asset has lost 57% of its value and more than 70% since its all-time high in November. last, at $69,000. Ethereum, the second most widely used cryptocurrency in the world, was trading…

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