Bitcoin Price Has Plunged 67% In 7 Months, Could Drop Further

The price of Bitcoin has crashed by more than 60% over the past seven months and could fall further amid tightening interest rates and high inflation.

As of Wednesday evening, the price of Bitcoin is hovering around $22,400 per coin, which is a 67% drop from its highest recorded value of $67,553.95 on Nov. 9, 2021, according to data from Coin Desk.

The digital currency market has been pummeled this week, with the overall market capitalization of crypto assets dropping to under $1 trillion from a peak of $3 trillion in November 2021.

Terra’s stablecoin, UST, also fell below $1 in value in May, while its sister token, luna, also lost 96% of its value in the same month.

Some crypto investors warned that the price of Bitcoin and other digital currencies would enter a “crypto winter” as the Federal Reserve tightens interest rates to stave off high inflation rates. A “crypto winter” happens when prices fall and remain low for an extended time.

Celsius Network, a U.S.-based crypto lender, announced it was temporarily suspending withdrawals and transfers between accounts to its 1.7 million users due to market volatility. The company is believed to be holding about $8 billion in deposits, all of which are now frozen. It is unclear when the company would allow withdrawals.

“Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts,” the company said in a statement published Sunday. “We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.”

The falling prices in the crypto market have also led other companies to cut their workforce. Coinbase Global, a major U.S. exchange company, on Tuesday announced it will cut about 18% of its workforce. Gemini also followed suit and said it will cut 10% of its workforce this month.