The price of Bitcoin (BTC) nearly fell below $20,000 U.S overnight as the selloff in cryptocurrencies continues.
Bitcoin rose slightly to $20,900 U.S. in early morning trading but was down 4% from the day before (June 15) as the stock market continues to be volatile and investors sell riskier assets.
The largest digital currency has fallen 27% in the last week and has dropped nearly 70% from its all-time high of $68,000 reached last November.
The price of Bitcoin has been closely correlated with stocks in recent months, particularly technology stocks. However, several issues continue to weigh on the cryptocurrency market.
Investor sentiment is still shaken after the collapse of algorithmic stablecoin TerraUSD (UST) along with its sister token Luna. Another algorithmic stablecoin, USDD, also lost its dollar peg earlier this week. Tron DAO Reserve, which is responsible for maintaining USDD’s $1 peg, holds other cryptocurrencies in reserve.
Analysts and investors also continue to closely watch Celsius, the cryptocurrency lending platform that appears to be on the verge of insolvency, sparking fears of contagion in the broader market for digital coins and tokens. Earlier this week, Celsius halted all withdrawals for its customers, citing market volatility.
