Crypto industry gripped by anxiety as bitcoin wobbles near key $20,000 level

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The cryptocurrency industry was on edge on Monday morning as investors feared contagion from problems at major crypto players could unleash a major shakeout if not contained.

Bitcoin was trading either side of $20,000 on Monday, while no.2 token ether was at $1,075, having dipped below its own symbolic level of $1,000 over the weekend.

"There is a lot of credit being withdrawn from the system and if lenders have to absorb losses from Celsius and Three Arrows, they will reduce the size of their future loan books which means that the entire amount of credit available in the crypto ecosystem is much reduced. To be sure, the developments in crypto have coincided with an equities slide, as U.S. stocks suffered their biggest weekly percentage decline in two years on fears of rising interest rates and the growing likelihood of recession.

 

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