Bitcoin stems heavy losses but pessimism reigns in crypto markets

Bitcoin steadied on Tuesday after initially falling to a new 18-month low as major crypto lender Celsius Network’s freezing of withdrawals and the prospect of sharp US interest rate rises shook the volatile asset class.

Bitcoin clawed its way to positive territory after falling as much as 7.3 per cent to $20,816, its lowest since Dec. 2020. It was last up 1.1 per cent.

The world’s largest cryptocurrency fell 15 per cent on Monday, its biggest one-day drop since March 2020. Bitcoin is down about half this year and over 20 per cent since Friday alone. Since its record high of $69,000 in November, it has slumped nearly 70 per cent.