Bitcoin briefly drops below $20,000 again as pressure continues to mount on crypto market

Bitcoin and other cryptocurrencies fell sharply as investors dump risk assets. A crypto lending company called Celsius is pausing withdrawals for its customers, sparking fears of contagion into the broader market.

There were a number of factors that weighed on the market, including macroeconomic worries and issues with cryptocurrencies.

At 07:30 a.m., the world's largestcryptocurrencies was down more than 4%. According to data from coin desk. The price of the virtual currency fell as low as $19,84.

ether was sharply lower.

The last two weeks have seen a tight range in the price of the digital currency.

Analysts at Bitfinex said in a note on Wednesday that a narrative that could well play out for the rest of the year and beyond is guidingbitcoin lower today.

There are fears of a recession in the U.S. due to high inflation and the fact that central banks are trying to raise rates even more.

The U.S. stock markets fell on Tuesday. A correlation has been found between the movements in U.S. stock markets and the price of digital currency.

In an interview with CNBC, the vice president of corporate development and international at Luno said that he expects the price of the digital currency to be between $17,000 and $22,000 for a while.

Ayyar said that most bounces are being sold off for the past few weeks in order to trap late buyers.

Sam Bankman-Fried, the CEO of FTX, has offered credit lines to struggling firms.

The market took a break after the fall. Charles Hayter told CNBC via email that there are still systemic issues.