Bitcoin crashes to its lowest level on Saturday (22)

by Amani Nilar 23-01-2022 | 3:46 PM

COLOMBO (News 1st); Bitcoin, along with other digital cryptocurrencies, crashed to its lowest level on Saturday (22).

Former central bank Deputy Governor Dr. W.A. Wijewardena has tweeted that Sri Lankan youth are increasingly trading cryptocurrency by circumventing CBSL regulations.

However, the Central Bank has advised against investing in digital currencies due to the risks it poses to the users and the economy.

The continuing meltdown has wiped out over $1 trillion from the global crypto market value.

Accordingly, Bitcoin's value had dropped to 38,500 US dollars by Friday and then to 35,000 US dollars by Saturday (22).

It was trading at roughly 69,000 US dollars in November 2021.

Other digital currencies including Ethereum, Binance Coin and Cardano also witnessed similar meltdowns.

Foreign media reported that there may be three reasons causing the value of cryptocurrency to drop.

Reports suggest the drop may have been caused after;

The market witnessing one of the highest ever single-day liquidations
Russia's ban on cryptocurrency
Losses experienced in USA's stock market.

Foreign media also reported that cryptocurrencies are known for their volatility, which means that as quickly as prices rise, they can tumble back down.

This report was compiled with the contribution of Hassan Shazuli