Crypto industry fears contagion as bitcoin slips back under $20,000
— Meet margin calls, Cover losses, Contagion, Lost almost 60, Level, Latest meltdown, Trading, Year, Crypto, Assets — 1 min read
Bitcoin, the world's biggest cryptocurrency, was trading just under the symbolic level of $20,000 in early London trading hours. It has lost almost 60% of its value this year and 37% this month alone. Further declines could have a knock-on effect as other crypto investors are forced to sell their holdings to meet margin calls and cover losses. The fall follows problems at several major industry players, including hedge fund Three Arrows Capital, which is exploring options including the sale of assets and a bailout by another firm, its founders told the Wall Street Journal in a story published on Friday. It is the latest in a series of meltdowns in the cryptocurrency sector as investors fear a wider market shakeout could be triggered by problems at major firms. Source