Digital asset slides to lowest level since November 2020 as rate rises increase pressure on markets
The investor panic also started to affect financial businesses focused on the crypto markets. Last week Celsius Network, a bank-like business that offered high rates of return on cryptocurrency deposits,. Then Three Arrows Capital, a hedge fund that made expensive bets on the crypto markets, admitted it was in trouble.
Speaking to the Wall Street Journal on Friday, Three Arrows’ co-founder, Kyle Davies, said the firm was looking at asset sales or selling itself to another business. The $20,000 level is viewed as important by some crypto followers for a number of reasons.
“There are lot of funds, large borrowers of bitcoin, who have liquidation positions in $20,000 range,” said Bobby Lee, chief executive of the crypto storage company Ballet Global, in an interview with Bloomberg TV.