Bitcoin briefly sank below $19,000 on Thursday, hitting a fresh low for the year as investors digested the collapse of crypto hedge fund Three Arrows and the rising risk of an economic recession.
The leading cryptocurrency was down 4.4% at $19,209.20 as of 9:30 a.m. ET Thursday, according to CoinBase data.
Bitcoin’s value has plummeted nearly 60% so far this year and more than 70% off its all-time high of $69,000 last November.
Bitcoin continues to be under pressure as other assets are.
The mix of high inflation, rising interest rates and recession weigh on cryptocurrencies,” Yves Longchamp, head of research at SEBA Bank, told CNBC regarding the selloff.
Other top cryptocurrencies are also struggling. Ethereum was down more than 6% to $1,032 and solana sank 6% to $32.
The latest downturn followed a series of negative developments within a cryptocurrency sector already reeling from a months-long selloff.
Investors have dumped cryptocurrencies and stocks as the Federal Reserve steadily hikes interest rates to tamp down decades-high inflation.
The rapid plunge in bitcoin’s price has triggered fears of a liquidity crisis among struggling operators.
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