Bitcoin Plummets Below $20,000 for First Time Since November 2020
Summary
SAN FRANCISCO — The price of Bitcoin fell below $20,000 for the first time since November 2020 on Saturday, amid a broader market meltdown driven by rising interest rates, inflation and economic uncertainty spurred by the war in Ukraine. Investing in Bitcoin and other cryptocurrencies surged in the pandemic alongside other risky bets on assets like “meme stocks,” collectibles including sneakers and trading cards, and digital art and media known as nonfungible tokens, or NFTs. The speculation was driven by free-flowing stimulus checks, low interest rates on other investments, a social media frenzy, pandemic boredom and a fear of missing out on the next big thing. Senators Cynthia Lummis, Republican of Wyoming, and Kirsten Gillibrand, Democrat of New York, proposed legislation that would create a regulatory framework for the industry, giving more authority to the Commodity Futures Trading Commission, an agency that crypto companies have openly courted. This year, the Super Bowl featured four ads for crypto companies, including Matt Damon warning viewers that “fortune favors the brave.” That swaggering optimism faltered this spring as the stock market plummeted, inflation soared and layoffs hit the tech sector.