Bitcoin, the most recognizable digital asset, slid below 20,000 in a broad market downturn this Saturday. This marks the first major drop since December 2020, signaling a sector-wide pause for many investors.
Ether, another leading cryptocurrency, briefly dipped under 1,000, a level not seen since January 2021, underscoring renewed volatility across the market.
Analysts point to a few persistent forces behind the renewed downturn: a sustained fall in prices after a long period of decline, central banks tightening policy to fight inflation, and a growing liquidity crunch that makes funding riskier assets harder to secure.
Several crypto firms have announced cost-cutting measures to weather the storm. Gemini and Coinbase disclosed staff reductions of about 10% and 18% respectively, signaling that a crypto winter may be expected by many in the industry.
According to CoinMetrics, Bitcoin had lost more than 7% in the past 24 hours. At 10:00 a.m. New York time (14:00 GMT), Bitcoin traded around $19,175, with Ether near $1,000.45 after an approximately 8% drop.
The steepest single-day decline for Bitcoin occurred when a major trading platform suspended withdrawals, as Celsius Network halted all customer transactions amid what executives called extreme market conditions.
This slide followed the broader Friday move, which saw prices fall after U.S. inflation data released for May showed an 8.6% year-over-year increase, a higher rate than many forecasters expected.
The latest downturn followed a May event that wiped out confidence in certain stablecoins tied to traditional currencies. TerraUSD, one of the most notable recent collapses, highlighted the fragility of some crypto-native promises during periods of stress and contributed to a cautious mood across markets in North America and beyond.
Shortly after Celsius Network shut down operations, Binance, the world’s most-used crypto exchange, halted all Bitcoin withdrawals due to a technical issue, leaving traders scrambling to manage risk and liquidity in a fragile environment.
Across North America, investors and institutions are weighing the implications for portfolios, regulatory debate, and the pace of innovation in blockchain technology. While many players emphasize risk controls and longer-term strategies, the current environment acts as a reminder that volatility remains a defining feature of the digital-asset space.
Market watchers in the United States and Canada continue to monitor the interplay between macroeconomic policy, exchange liquidity, and the evolving regulatory landscape as the sector recalibrates after rapid gains and swift losses. In this climate, risk management, transparent disclosures, and prudent sourcing of capital stand out as crucial elements for navigating the ongoing uncertainty.