CoinDesk revealed that the price of the most popular

cryptocurrency, Bitcoin, has slipped to a level not seen in

cryptocurrencies since 2020, as the price approached

$20,000, as the slide has extended for 12 weeks so far

Bitcoin price data

According to the economic website, the approaching of the

bitcoin price to $ 20 thousand came during European

trading hours yesterday, Wednesday, indicating a decline in

the market value that comes in conjunction with weak

macroeconomic sentiment and risks of contagion from

. within the crypto market, the data showed

Meanwhile, Celsius, a popular cryptocurrency lender,

announced a temporary freeze on all purchases and

withdrawals earlier this week; It attributed its decision to

"harsh market conditions," which led to questions about

the company's liquidity. Prominent crypto fund Three

Arrows also faced at least $400 million in liquidations and

rushed to lower escrow levels by selling major positions

on Wednesday morning

The decline in the market value of Bitcoin began in the

early hours of last Tuesday, as it fell about 22,000 dollars,

and the decline intensified on Wednesday morning, as the

cryptocurrency slipped below 21,000 dollars, fell for the

eighth consecutive day and lost 30% during the past week

Consumer Price Index

Meanwhile, the US Consumer Price Index (CPI) report for

May showed that inflation in the world's largest economy

reached 8.6% on an annual basis, 0.3 percentage point

higher than the expected 8.3%

At a time when investors were pricing in further price

increases as the Federal Reserve tries to control prices,

. after stock prices fell in global trading markets

The drop in stock prices comes as traders expect

companies to report lower revenue and consumer

spending. Moreover, some observers expect the US central

bank's actions to further affect Bitcoin prices

See also: The US Federal Reserve raises interest rates by

75 points, in the largest increase since 1994

Over the past two years, cryptocurrencies have become a"

global all-encompassing asset," Michael Morch, CEO of

crypto hedge fund ARK36, said in an email. So expect

their reaction to be negative now when investors realize

that central banks have not reacted nearly as aggressively

"as they would need to in order to control inflation

He continued, "The global economic environment has

become very challenging for investors participating in all

types of markets, so it is no surprise that Bitcoin is also

' facing increased downward pressure