Bitcoin sinks below $20,000 for first time since 2020 (Cryptocurrency:BTC-USD)

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Bitcoin (BTC-USD) -10% fell below the $20K early Saturday as the plunge in risk assets continued to hit cryptocurrencies.

The last time bitcoin saw these levels was in December 2020.

It is down nealry 60% year to date. It hit a low of the day nearly $18,700.

Other cryptos are falling as well, with Ethereum (ETH-USD) -9.6% now below the $1,000 mark and Litecoin (LTC-USD) -5.6% below $45.

“If these levels break, $20K $BTC & $1K ETH, we can expect massive sell pressure in the spot markets as dealers hedge themselves,” BitMEX co-founder Arthur Hayes tweeted earlier in the week. “We can also expect that there will be some otc dealers and that will be unable to hedge properly and might go belly up.”

Cryptocurrency hedge fund Three Arrows Capital failed to meet margins calls from lenders this week amid a spate of bad bets.

While many have argued that cryptocurrencies would be an alternative to fiat currency and a a hedge against times of high inflation, bitcoin has mostly tracked risk assets throughout the equity selloff as global central banks tighten financial conditions. There have been 124 rate hikes across the world so far this year, BofA says.

Bill Gates said this week that he believes cryptocurrencies and NFTs are based on the greater fool theory.

One Dogecoin (DOGE-USD) -8.5% sued Elon Musk this week for $258B alleging the Tesla founder has been running a pyramid scheme to prop up the memcoin.