Bitcoin (BTC) Price Plummets to Its Lowest Level Since Late 2020

• During the previous two days, the price of Bitcoin (BTC) has fallen by 20%.
• Celsius has banned withdrawals for users in a shocking move.

Over the weekend, Bitcoin (BTC) lost ground, falling to its lowest level since late 2020 as a wave of sell signals pushed the token down.

During the previous two days, the price of Bitcoin (BTC) has fallen by 20% and is now trading below $24,000. The token’s market capitalization has also fallen under $500 billion. However, despite BTC’s latest losses due to hot US inflation statistics, many other factors spurred significant selling over the weekend.

Bears in Total Control

This week, the US Federal Reserve is projected to raise interest rates by more than predicted, which will negatively impact the value of BTC. Due to a serious liquidity shortage, prominent participant Celsius has banned withdrawals in the DeFi area, further deteriorating the cryptocurrency market’s mood.

Taking center stage this week in economic news is the Federal Reserve’s two-day meeting beginning on Wednesday, June 14. There will be a lot of attention on interest rate increases because of the strong inflation estimates.

CME Group data reveals that 76 percent of traders expect interest rates to rise by up to 75 basis points this week, which would bring them near pre-pandemic levels. The tightening of the market’s liquidity is predicted to impact the value of cryptocurrencies negatively. Also, the Fed’s dread of an impending economic shock is apparent.

Celsius’ recent restriction of withdrawals shows that the DeFi sector is in the midst of a serious liquidity crisis. When Lido Staked Ethereum (stETH) was de-pegged, panic selling ensued, resulting in Ethereum’s bloodbath. It has been a rough year for the second-largest cryptocurrency. According to CMC, the Bitcoin price today is $23,945.09 USD with a 24-hour trading volume of $54,650,776,639 USD. Bitcoin is down 12.00% in the last 24 hours.