Bitcoin, the largest cryptocurrency, sank 7.3% to $19,085, after hitting $18,732, its lowest level since December 2020.
It has plunged 59% this year, while rival cryptocurrency Ethereum-backed ether has plunged 73%. In 2021, bitcoin peaked at over $68,000.
“Breaking $20,000 shows that confidence has collapsed for the crypto industry and the latest strains are being seen,” Edward Moya, senior market analyst at OANDA, said on Saturday. “There are too many cryptocurrencies and markets that are under tremendous financial pressure due to movements in borrowing costs.”
The sector has also suffered losses after companies including Coinbase Global, Gemini and Blockfi said they would lay off thousands of employees as investors dump risky assets.