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Crypto Sell-off Keeps Bitcoin dipping

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Bitcoin, the world’s largest cryptocurrency, has now lost about 70% of its record high set in November, 2021, of $68,900. Bitcoin tumbled Wednesday reaching a new 18 month low. As has been shown before, smaller coins typically get taken down as Bitcoin dives, and we are seeing no shortage of that very thing take place. 

Wednesday marked a 7.8% fall at $20,289. This is its lowest since December of 2020. It has subsequently lost 28% of its value since last Friday. This week has been rough for the crypto market as constant dips bring demand for cryptos lower. Celsius transactions remain frozen, adding to the fear of a wider fallout in digital asset markets after, coming after the fall of Terra LUNA.

A snowball effect seems to have struck the industry as traders are selling off their assets. With continuing losses, there may be lingering concern over accelerated losses. 

Around $102 million in crypto outflows were reported last week according to CoinShares, with the investors concerned about a tighter central bank policy. CoinMarketCap data also shows that global crypto has fallen under $900 billion from its $2.97 trillion in November.

“The ripples running through the market haven’t stopped yet,” said Scottie Siu, investment director at Hong Kong-based Axion Global Asset Management. “I think we’re still in the middle of it unfortunately, the game isn’t over.”

Celsius has been in the process of hiring restructuring lawyers, looking for possible finance options from investors as reported by the Wall Street Journal. 

Smaller cryptos have also taken a dive, with ETH falling as much as 12%, the lowest it has been in a year. 

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