Crypto market observers remain pessimistic about Bitcoin’s immediate prospects, even after the cryptocurrency stabilized in value after a recent decline. The pessimistic view further confirm initial view that the worst is yet to come.<\/p>\n
Bitcoin rebounded from a 7.3% loss to $20,816 its lowest level since December 2020. Bitcoin was last traded at $22,470. Ether, the second most valuable token, rebounded from a loss of up to 10% to $1,075, a fresh 15-month low.<\/p>\n
Bitcoin hit a new 18-month low after crypto lender Celsius Network froze withdrawals and transfers citing “extreme” market conditions. Bitcoin fell 15% on Monday, marking its biggest one-day loss since March 2020. Since hitting a record high of $69,000 in November, the cryptocurrency has slumped nearly 70%.<\/p>\n
“With the broader risk sentiment firmly negative the sellers have had it all their own way for a few days. It will take a shift in the overall risk sentiment to turn the price around significantly,” said Richard Usher of cryptocurrency firm BCB Group.<\/p>\n
The slump in Bitcoin is likely to have an impact on companies in the sector. Coinbase, one of the largest cryptocurrency exchanges, said on Tuesday that it would cut 18% of its workforce, or about 1,100 jobs, to keep costs in check amid volatile market conditions.<\/p>\n