Bitcoin plunges below $24K as headwinds mount

Bitcoin and other cryptos continue to struggle in sympathy with equities

Bitcoin briefly slipped to a new 52-week low of $22,601.69 per coin on Monday, before bouncing higher, as some investors ditch crypto amid recent market volatility.  

As of the time of publication, the world's largest cryptocurrency is trading around the $23,000 per coin mark, while Ethereum and Dogecoin have fallen to just above $1,200 and 5 cents per coin, respectively. 

Bitcoin and other cryptocurrencies have struggled in sympathy with the broader stock market, which is contending with scorching-hot inflation. The Federal Reserve, which has already begun hiking interest rates to bring inflation down, will offer an update on its outlook for the economy this week following its two-day policy-setting meeting.

Bitcoin, crypto, Novogratz

Mike Novogratz, chief executive officer of Galaxy Investment Partners (Reuters/Andrew Kelly)

Billionaire crypto investor Mike Novogratz recently told CoinDesk's 2022 Consensus Conference that Bitcoin isn’t going to "trade well before the Fed flinches and takes its foot off the brake."

"My hope is that by the fourth quarter, the economy will be slowing enough that the Fed says we are going to pause, and then you will see the next crypto cycle start," he explained. "Then bitcoin will break from equities and lead markets."

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Gemini founders Cameron and Tyler Winklevoss have warned that the industry is entering a "crypto winter," described as a "contraction phase settling into a period of stasis." The cryptocurrency exchange recently cuts its staff by 10%, citing "turbulent market conditions that are likely to persist for some time."

Winklevoss, crypto, bitcoin

Entrepreneurs Tyler and Cameron Winklevoss  (Reuters/Lucas Jackson)

Ticker Security Last Change Change %
COIN COINBASE GLOBAL INC. 257.63 -7.52 -2.84%

In addition, Coinbase has extended a hiring pause and started rescinding some of its accepted job offers in response to "current market conditions and ongoing business prioritization efforts."

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On Sunday, crypto lending firm Celsius said it would pause all withdrawals, swaps and transfers between accounts due to "extreme market conditions."

"We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets," the firm said in a blog post

Binance has also temporarily paused Bitcoin withdrawals due to a "stuck transaction causing a backlog."