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Bitcoin falls to lowest level since 2020

Bitcoin falls to lowest level since 2020
Bitcoin dropped 9% to below $21,000 on Thursday, reaching its lowest level since 2020. File Photo by John Angelillo/UPI | License Photo

June 16 (UPI) -- Bitcoin fell once again Thursday as cryptocurrencies suffer from recession concerns.

As of 6:45 p.m. bitcoin was down 9.1%, valued at around $20,500, some of its lowest levels since 2020 and 60% down from its all-time high in November.

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The cryptocurrency has fallen 20% in the past week amid a broad sell-off in risk assets that has seen the Nasdaq Composite decline 6.1% in the same period.

The decline also comes as Terra USD and its sister token luna collapsed.

Terra USD is a so-called "stablecoin" -- a type of cryptocurrency meant to be pegged to a real-world asset such as the U.S. dollar.

However, coins like Terra USD don't have assets in reserve and the $1 peg is instead governed by an algorithm.

Cryptocurrency-related stocks have also suffered, with Coinbase -- a cryptocurrency exchange platform -- falling 7.2% Wednesday.

A Securities and Exchange Commission filing Tuesday showed that Coinbase will lay off about 1,100 people, or 18% of its global workforce, leaving the company with about 5,000 employees by June 30.

Rick Rieder, BlackRock's chief investment officer of global fixed income, told Yahoo Finance that bitcoin and other cryptocurrencies have the fortitude to withstand the crash.

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"You are seeing a lot of leverage that was built up around crypto come unglued quickly," Rieder said. "I still think Bitcoin and crypto are durable assets. It's a durable business, but there was so much excess built around it in cash."

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