Bitcoin has dropped roughly 6.1% to $18,866.77 at 2004 GMT on Thursday, putting the biggest and best-known cryptocurrency down to $1,226.41 from its previous close and 60.9% down from the year’s high of $48,234 on March 28.
With several big players in the cryptocurrency markets having difficulties, the further declines could force other crypto investors to sell their holdings in order to meet margin calls and cover losses.
The coin linked to the ethereum blockchain network, Ether, has dropped about 7.5% to $1,016.08 on Thursday, losing $82.38 from its previous close.
Ever since U.S. based lender Celsius Network this month said it would suspend withdrawals, all digital assets have struggled. Bitcoin and ether were further shakened by the apparent failure of crypto hedge fund Three Arrows Capital, which a person familiar with the matter told Reuters has entered liquidation.
The majority of the industry’s recent problems can be traced back to the spectacular collapse of so-called stablecoin TerraUSD in May, which unfortunately witnessed the stablecoin losing almost all its value, along with its paired sister token, Luna.