On Sunday, crypto lending and trading platform Celsius Network announced that it would be pausing all withdrawals and transfers. Coinbase, another crypto trading platform, also laid off 18 per cent of its workforce on Tuesday and warned of an extended "crypto winter."
And on Saturday, the price of Bitcoin fell below US$20,000 for the first time since 2020.
This the weakest level of the most popular cryptocurrency since December 2020 - before pulling back up to $18,556, still down 9.22%.
Bitcoin has now lost more than 70% of its value since reaching its peak. In 2021, Bitcoin peaked at more than $68,000.
The crypto market rebounded on Monday even as sentiments remained wobbly. However, if further optimism prevails, investors fear it may lead to a further meltdown in the new-age asset class.
Bitcoin breached $20,000 level whereas Ethereum held above $1,000. The major cryptos have wiped off the gains they incurred in the last five years.
Cryptocurrency values have fallen amid soaring consumer prices and interest rate hikes, thus proving to be a poor hedge against broader economic conditions. Crypto prices have also crashed in tandem with sinking stock markets, making them less valuable as a way to diversify portfolios. Bitcoin and Ether are down 58% and 71% for the year, respectively. (In contrast, the S&P 500 is down just 23% for the year).
What do you think - is it a good time to buy into Crypto or get out?