Cryptocurrency Market continues to shake. Bitcoin has recovered, which saw levels below $18,000 over the weekend, and at the time we write the report Bitcoin price is above $20,000, Cryptocurrency prices will not settle at that level.

Bitcoin has fallen since its historic peak of $67,000 in November last year and saw $30,000 on June 10 and $20,000 on June 18, to $18,000 yesterday and experienced its lowest level in the last 1.5 years.

Bitcoin status in the market now

Asian Stock Exchange opened its activity with an active purchase of cryptocurrencies, which led to a partial rise in prices, as Bitcoin rose from 19,500 dollars to 20,600 dollars, which is equivalent to an 8% increase. On the other hand, Ethereum is still priced in the $1000 critical region.

However, Cardano is up 6% at $0.4, Ripple is up 5% at $0.31, Solana is up 10% at $32, and Dogecoin is up 4% at $0.0025.

With the opening of the US stock exchange, cryptocurrency prices plummeted, causing bitcoin to drop from $20,500 to $20,058.

Therefore, we will discuss the causes of the price earthquake, which is still affecting cryptocurrencies.

What happened in the cryptocurrency market

Bitcoin has lost more than half its value this year and plunged below $18,000, its lowest level in 18 months.

The 8 largest Digital Currencies by market capitalization also recorded combined losses of about $1.6 trillion, amid severe turmoil in the cryptocurrency markets.

The decline prompted many investors to exit any risky investments, including digital currencies, and to be keen to enhance savings.

This wave of significant losses is the longest of its kind ever experienced these days in digital currencies, as the market value of these currencies fell only last week to $ 800 billion, compared to $ 3.2 trillion in mid-November.

It was not only Bitcoin that suffered significant losses, buy Ethereum - which constitutes the second largest cryptocurrency - has also fallen by 73% this year.

Why did cryptocurrency collapse

Cryptocurrency is falling due to:

a)Investors are acutely concerned about investing in all risky sectors.

b)This concern was exacerbated by most of the world's central banks raising interest rates due to the rise in global inflation rates to record levels.

c)Losses of these currencies were exacerbated after the Chinese government banned financial institutions and payments companies from providing cryptocurrency services.

d)The major global problem at this level is that the countries of the world implement completely different strategies in the field of digital currencies.

e)Also, many encrypted service providers operate across borders, without restrictions, which makes monitoring them difficult.

What did the IMF say about dealing with cryptocurrencies

The International Monetary Fund said that there are several things that must be adhered to when developing a global financial system for digital currencies and to reduce their violent volatility, including:

• Imperative for crypto asset service providers to have official licenses.
• Subject cryptocurrency exchanges to the same rules as global exchanges of all kinds.
• The inevitability of central bank supervision of those currencies.
• The necessity of establishing supervisory bodies working in investment companies, banking and insurance sectors, and pension institutions. Setting special conditions when dealing with those currencies.

Cryptocurrency market turmoil

The Cryptocurrency market was affected by extreme volatility with cryptocurrency lender Celsius Network freezing withdrawals early last week after investors began dumping risky assets on fears of a massive Federal Reserve interest rate hike to curb rising inflation.

Bit Oasis, a UAE-based cryptocurrency exchange focused on the Middle East, said on Sunday that it had laid off 9 of its employees, becoming the newest company in the world. The sector cuts jobs in the face of the downturn and market turmoil.

CEO of Crypto.com, a Singapore-based cryptocurrency exchange, announced on Twitter that the company would lay off 5% of its workforce, noting that the company had made “difficult and necessary decisions.” This platform decision, which was played by famous NBA star LeBron James in his ads and has 50 million customers and 4000 employees, was also evidence that companies doing crypto business are starting to lose.

And Coinbase Global announced last Tuesday that it will cut its workforce by 10% by 1,000 jobs.