{"id":51086,"date":"2022-06-15T01:35:02","date_gmt":"2022-06-15T01:35:02","guid":{"rendered":"https:\/\/harchi90.com\/bitcoin-stabilizes-after-heavy-losses-but-pessimism-reigns-in-crypto-markets\/"},"modified":"2022-06-15T01:35:02","modified_gmt":"2022-06-15T01:35:02","slug":"bitcoin-stabilizes-after-heavy-losses-but-pessimism-reigns-in-crypto-markets","status":"publish","type":"post","link":"https:\/\/harchi90.com\/bitcoin-stabilizes-after-heavy-losses-but-pessimism-reigns-in-crypto-markets\/","title":{"rendered":"Bitcoin stabilizes after heavy losses but pessimism reigns in crypto markets"},"content":{"rendered":"<div>\n<p data-testid=\"paragraph-0\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">LONDON \/ WASHINGTON, June 14 (Reuters) &#8211; Bitcoin steadied on Tuesday after earlier hitting a new 18-month low, as major crypto lender Celsius Network&#8217;s freezing of withdrawals and the prospect of sharp US interest rate rises shook the volatile asset class.<\/p>\n<p data-testid=\"paragraph-1\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Bitcoin clawed its way to positive territory after much as 7.3% overnight to $ 20,816, its lowest since Dec. 2020. It was last hovering around $ 22,470.<\/p>\n<p data-testid=\"paragraph-2\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">The world&#8217;s largest cryptocurrency fell 15% on Monday, its sharpest one-day drop since March 2020. It has shed about half its value this year and over 20% since Friday alone.  Since its record high of $ 69,000 in November, it has slumped nearly 70%.<\/p>\n<div class=\"registration-prompt__container__2jf5K registration-prompt__inline__2WDU- article-body__element__2p5pI article-body__inline-registration-prompt__1-N9W\">\n<div class=\"registration-prompt__text-content__o0YET\">\n<h5 data-testid=\"Heading\" class=\"text__text__1FZLe text__white__3r45t text__medium__1kbOh text__heading_5__2krbj heading__base__2T28j heading__heading_5__2A2g- registration-prompt__heading__3fq-h\">Register now for FREE unlimited access to Reuters.com<\/h5>\n<p><button data-testid=\"Button\" class=\"button__button__2Ecqi button__secondary__18moI button__round__1nYLA text-button__container__3q3zX registration-prompt__button-text__3kTtQ\" type=\"button\"><\/p>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__inherit-color__3208F text__bold__2-8Kc text__default__UPMUu text-button__medium__113uZ\">Register<\/span><\/p>\n<p><\/button><\/div>\n<\/div>\n<p data-testid=\"paragraph-3\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Citing &#8220;extreme&#8221; market conditions, New Jersey-based Celsius said this week that it had frozen withdrawals and transfers between accounts &#8220;to stabilize liquidity and operations while we take steps to preserve and protect assets.&#8221;<\/p>\n<p data-testid=\"paragraph-4\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">The move, combined with expectations of sharper US Federal Reserve interest rate hikes after high US inflation data last week, pushed the value of the crypto market under $ 1 trillion for the first time since January 2021. read more <\/p>\n<p data-testid=\"paragraph-5\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Most crypto market-watchers were pessimistic on bitcoin&#8217;s immediate prospects.<\/p>\n<p data-testid=\"paragraph-6\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">&#8220;With the broader risk sentiment firmly negative the sellers have had it all their own way for a few days,&#8221; said Richard Usher at crypto firm BCB Group.  &#8220;It will take a shift in the overall risk sentiment to turn the price around significantly.&#8221;<\/p>\n<p data-testid=\"paragraph-7\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Bitcoin&#8217;s slump is likely to have ramifications for other companies exposed to the crypto market.<\/p>\n<p data-testid=\"paragraph-8\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">On Tuesday, cryptocurrency exchange Coinbase Global Inc (COIN.O) said it would slash 18% of its workforce, or about 1,100 jobs, as part of efforts to rein in costs amid volatile market conditions.  read more <\/p>\n<p data-testid=\"paragraph-9\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">US software firm MicroStrategy Inc (MSTR.O) &#8211; a major backer of bitcoin &#8211; said last month a drop below $ 21,000 would trigger a demand for extra capital against a loan secured by some of its bitcoin holdings.  read more <\/p>\n<div class=\"article-body__element__2p5pI\" data-testid=\"gallery-0\" domain=\"https:\/\/www.reuters.com\" article_url=\"https:\/\/news.google.com\/technology\/no-let-up-crypto-slide-celsius-halt-leaves-investors-panicking-2022-06-14\/\">\n<div class=\"inline-gallery__detail__3ZG21\">\n<div class=\"caption__container__1o2DX inline-gallery__caption__1BuRa\">\n<p data-testid=\"Body\" class=\"text__text__1FZLe text__white__3r45t text__regular__2N1Xr text__small__1kGq2 body__base__22dCE body__caption__3L8vY caption__text__GE-bd caption__collapsed__XIFyB\">A neon logo of cryptocurrency Bitcoin is seen at the Crypstation cafe, in downtown Buenos Aires, Argentina May 5, 2022. Picture taken May 5, 2022. REUTERS \/ Agustin Marcarian<\/p>\n<p><button data-testid=\"Button\" class=\"button__button__2Ecqi button__ghost__1gV9w button__round__1nYLA text-button__container__3q3zX caption__readmore__V8B-O caption__collapsed__XIFyB\" type=\"button\"><\/p>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__inherit-color__3208F text__bold__2-8Kc text__default__UPMUu text-button__medium__113uZ\">Read More<\/span><\/p>\n<p><\/button><\/div>\n<\/div>\n<\/div>\n<p data-testid=\"paragraph-10\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">That could see it stake more bitcoin against the loan or trigger the sale of some of its vast holdings.  The company did not immediately respond to a request for comment outside business hours.<\/p>\n<p data-testid=\"paragraph-11\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">MicroStrategy and Coinbase both fell more than 5.5% in premarket trading on Tuesday as the decline in bitcoin roiled crypto-related stocks, but were up 8.11% and 0.27% respectivelyby the afternoon.<\/p>\n<p data-testid=\"paragraph-12\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">No. 2 token ether also recovered somewhat after losing as much as 10% to $ 1,075, a fresh 15-month low.  Ether is down 75% from its record high of $ 4,869, hit in November.<\/p>\n<figure class=\"article-body__element__2p5pI\" data-testid=\"graphic-0\">\n<div class=\"reuters-graphic__image-container__Pqe8z\">\n<div data-testid=\"StatefulImage\" class=\"stateful-image__container__hH_Q_ stateful-image__light__2XHJA\">\n<div data-testid=\"Image\" class=\"stateful-image__image__ThpeM\"><noscript><\/noscript><\/div>\n<\/div>\n<\/div><figcaption data-testid=\"Body\" class=\"text__text__1FZLe text__medium-grey__3A_RT text__regular__2N1Xr text__small__1kGq2 body__base__22dCE body__caption__3L8vY reuters-graphic__figcaption__2fuWM\">bitcoin chart<\/figcaption><\/figure>\n<p data-testid=\"paragraph-13\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">&#8216;PANIC&#8217;<\/p>\n<p data-testid=\"paragraph-14\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Celsius, which had around $ 11.8 billion in assets, offers interest-bearing products to customers who deposit crypto at its platform.  It then lends out coins to earn a return.  read more <\/p>\n<p data-testid=\"paragraph-15\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">&#8220;The market is now panicking about the impact and contagion if Celsius becomes insolvent,&#8221; wrote Singapore fund manager QCP Capital in a note.<\/p>\n<p data-testid=\"paragraph-16\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Crypto investors were already rattled by the collapse of the TerraUSD and luna tokens in May which were shortly followed by Tether, the world&#8217;s largest stablecoin, briefly breaking its 1: 1 peg with the dollar.  read more <\/p>\n<p data-testid=\"paragraph-17\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Celsius&#8217;s move to suspend withdrawals has raised fresh questions about regulatory oversight of such crypto-lending platforms.<\/p>\n<p data-testid=\"paragraph-18\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">On Tuesday, US Securities and Exchange Commission chair Gary Gensler told an event that such platforms were operating akin to banks, and questioned how they could offer such large returns.<\/p>\n<p data-testid=\"paragraph-19\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">&#8220;I caution the public. If it seems too good to be true, it just may well be,&#8221; he added.  read more <\/p>\n<div class=\"registration-prompt__container__2jf5K registration-prompt__inline__2WDU- article-body__element__2p5pI\">\n<div class=\"registration-prompt__text-content__o0YET\">\n<h5 data-testid=\"Heading\" class=\"text__text__1FZLe text__white__3r45t text__medium__1kbOh text__heading_5__2krbj heading__base__2T28j heading__heading_5__2A2g- registration-prompt__heading__3fq-h\">Register now for FREE unlimited access to Reuters.com<\/h5>\n<p><button data-testid=\"Button\" class=\"button__button__2Ecqi button__secondary__18moI button__round__1nYLA text-button__container__3q3zX registration-prompt__button-text__3kTtQ\" type=\"button\"><\/p>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__inherit-color__3208F text__bold__2-8Kc text__default__UPMUu text-button__medium__113uZ\">Register<\/span><\/p>\n<p><\/button><\/div>\n<\/div>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__default__UPMUu sign-off__text__PU3Aj\">Reporting by Tom Wilson and Elizabeth Howcroft in London, additional reporting by Sujata Rao in London, Alun John in Hong Kong and Katanga Johnson and Hannah Lang in Washington;  Editing by Muralikumar Anantharaman, Emelia Sithole-Matarise, Michelle Price, Chizu Nomiyama and Nick Zieminski<\/span><\/p>\n<p data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Our Standards: The Thomson Reuters Trust Principles.<\/p>\n<\/div>\n<p>    .<\/p>\n","protected":false},"excerpt":{"rendered":"<p>LONDON \/ WASHINGTON, June 14 (Reuters) &#8211; Bitcoin steadied on Tuesday after earlier hitting a new 18-month low, as major crypto lender Celsius Network&#8217;s freezing of withdrawals and the prospect of sharp US interest rate rises shook the volatile asset class. Bitcoin clawed its way to positive territory after much as 7.3% overnight to $ &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/harchi90.com\/bitcoin-stabilizes-after-heavy-losses-but-pessimism-reigns-in-crypto-markets\/\"> <span class=\"screen-reader-text\">Bitcoin stabilizes after heavy losses but pessimism reigns in crypto markets<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[8],"tags":[56,77,78,8397,8398,24,25,5475,30,5474,2302,5476,74,84,85,2304,34,5477,37,435,439,41,76,735,64,44,46,87,3553,279,48,49,50,51,52,285,75,57],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"fifu_image_url":"https:\/\/www.reuters.com\/resizer\/AjlubzI3WawXrIpEPQYO0MzwlPY=\/1200x628\/smart\/filters:quality(80)\/cloudfront-us-east-2.images.arcpublishing.com\/reuters\/W4IF6T6QZFNZLAUT4ZH3FGXT6Y.jpg","_links":{"self":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/51086"}],"collection":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/comments?post=51086"}],"version-history":[{"count":0,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/51086\/revisions"}],"wp:attachment":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media?parent=51086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/categories?post=51086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/tags?post=51086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}