Unrest crypto world claims new victim: bitcoin back below $20,000 | Financial

Bitcoin, which rebounded to a value of USD 21,500 over the weekend, has found its way back down firmly with a drop to $ 19,900. In the middle of this month, the slump was even greater, with the tumbling below $18,000.

The turmoil in the crypto world has still not abated. After the drama at Terra, whose value almost completely evaporated, and the bankruptcy of crypto lending platform Celsius, another major crypto party has gone under with hedge fund Three Arrows Capital (3AC).

Great position

Three Arrows Capital, which saw the light in 2012, has been in financial trouble for some time. The large position that the hedge fund had in Terra and another crypto currency Luna played a major role in this. While 3AC tried to turn the tide with asset sales, missing payments on a large $665 million loan put the company down. In the Virgin Islands where 3AC is located, the court declared bankruptcy on Wednesday.

Bitcoin investors are facing an unprecedented ride down this year. At the beginning of January, the digital currency was still around $46,000, but then fell sharply. After a strong recovery in March, things got worse and worse. The sharp decline in risk appetite due to rising interest rates also played a role in the gloomy course of events. At the end of last year, bitcoin peaked just below $70,000.

Other cryptocurrencies, such as Ethereum, are also heavily burdened by the greatly increased risk aversion among investors. The value of the second largest digital currency is still just above $1000. In April, there was another annual peak of $3500.

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