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Bitcoin prices have fallen below $ 17,800 as sales increase

Bitcoin fell to about $ 17,749, and Ether fell to about $ 897 at about 4:15 ET on Saturday afternoon, as sales in the crypto market accelerated. The two most popular cryptocurrencies in the world fell below 35% in the past week, both breaching symbolic price barriers.

Bitcoin bounced around $ 18,955 and after 8pm the ether was trading at around $ 995.

The carnage in the crypto market is partly caused by pressure from macroeconomic forces, including inflation and a succession of Fed rate hikes. We have seen these Blue Chip Cryptos track equities fall short. It does not help that crypto firms are sacking large numbers of employees and that some of the most popular names in the industry are facing a solution meltdown.

Bitcoin rose to $ 68,789.63 in November. That same month Ether rose to $ 4,891.70. Bitcoin was last traded around December 2020.

Here’s how we got here.

Monday

Alex Mashinsky, CEO of Celsius.

Piaras Ó Mídheach | Sportsfile for Web Summit | Getty Images

Tuesday

On April 14, 2021, people view the logo for Coinbase Global Inc, the US’s largest cryptocurrency exchange, at the Nasdaq MarketSite Jumbotron in Times Square, New York.

Shannon Stapleton | Reuters

Wednesday

Michael Saylor, President and Chief Executive Officer of MicroStrategy, first entered Bitcoin in 2020 when he decided to add cryptocurrency to MicroStrategy’s balance sheet as part of an unconventional Treasury management strategy.

Eva Marie Uzcategui | Bloomberg | Getty Images

Michael Saylor, CEO of MicroStrategy, appeared on CNBC on Wednesday morning, discussing concerns around his company, which made a $ 4 billion bet on Bitcoin. Sailor said the company will double as the first and only Bitcoin spot exchange-traded fund in the US, so investing in MicroStrategy will make you closer to the Bitcoin Spot ETF.

MicroStrategy used the company’s debt to buy bitcoin, and in March, when Sailor borrowed $ 205 million to use its bitcoin as collateral, it decided to take another step toward normalizing bitcoin-backed finance – and then to buy more cryptocurrency.

“We have $ 5 billion in collateral. We’ve borrowed $ 200 million. So I’m not going to let people go out and take out more leveraged loans. Saylor said Crypto Minor Marathon Digital also took a credit line with Silvergate Bank.

As bitcoin prices plummeted this week, investors worried that the company would ask for more collateral for its debt, but Sailor said the fears were extreme.

“The margin call hasn’t sounded much of anything,” Sailor told CNBC earlier this week. “It’s Twitter famous to me, so I appreciate it. I think we have a fortress balance sheet. We’re comfortable and the margin debt is well managed.”

Then on Wednesday afternoon, the Federal Reserve raised its benchmark interest rates by three-quarters of its most aggressive increase since 1994. The Fed said the move was made in an attempt to curb sky-high inflation.

Crypto prices initially rallied on the news that investors hoped we could avoid a recession, but that rally was short-lived.

Thursday

Bitcoin and other cryptocurrencies are in free fall.

Don Kitwood | Getty Images

Friday through Saturday

Bitcoin and other cryptocurrencies have fallen sharply as investors throw away risky assets. Celsius, a crypto lending company, is phasing out withdrawals for its customers, causing fears of an epidemic in the wider market.

Nurphoto | Nurphoto | Getty Images

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