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Bitcoin falls below $19,000 again as pressure mounts on crypto firms

Bitcoin prices continued to be under pressure in June as many factors, including rising rates and the liquidity crisis in the crypto industry, weighed on the world’s largest cryptocurrency.

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Bitcoin The world’s largest digital currency temporarily fell below $ 19,000 on Thursday as it continues to be under pressure from macroeconomic concerns and the liquidity crisis among prominent crypto companies.

Bitcoin was trading at $ 19,143.50 around 6:10 am, down 4% from 24 hours ago, according to CoinDesk data. Digital currencies have fallen about 58% this year alone, down more than 70% from the record high of $ 68,990.90 in November.

“Bitcoin continues to be under pressure like any other asset. A combination of high inflation, rising interest rates and a recession is putting pressure on cryptocurrencies,” said SEBA Bank’s research responsibility focused on digital assets. Eve Longchamp told CNBC by email.

The global stock market continues to be under pressure as the US S & P 500 is on track. First half of the worst year since 1970..

Bitcoin is a movement of the stock index, especially Nasdaq.. Stocks are under pressure to put pressure on Bitcoin prices.

Read more about CNBC Pro technology and cryptography

Investors are also worried about the rampant inflation that has forced the world’s central banks to raise interest rates. It also raises fears of recession in the United States and other countries.

Liquidity issues hit crypto companies

The plunge in crypto prices has revealed the highly leveraged nature of the industry and has caused liquidity problems across the enterprise.

Cryptocurrency hedge fund Three Arrows Capital has fallen into liquidation This week, someone who knew the problem told CNBC.The company was exposed to Stablecoin of the terraUSD algorithm that is currently collapsing And sister token Luna. Three Arrows Capital, also known as 3AC, has also reportedly failed to respond to margin claims from BlockFi.

Margin calls are situations where investors have to invest more money to avoid losses in transactions made with borrowed cash.

Meanwhile, cryptocurrency exchange CoinFlex suspended customer withdrawals last week due to “extreme market conditions.” CoinFlex CEO Mark Lamb is a longtime crypto investor, Roger Ver. The company has a debt of $ 47 million.. Ver denies that he is borrowing money in exchange.

CoinFlex Issue new coins to make up for the $ 47 million shortfall.. Ram told CNBC in an interview Wednesday that CoinFlex is in talks with several large funds interested in buying tokens.He also said Customer withdrawals will not resume on Thursday As planned.

“In this environment, there remains pressure on Bitcoin and other crypto assets,” said Longchamp, given the uncertainty about whether the industry has been de-leveraged.

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