Investors Bruised And Bewildered From Crypto Meltdown
Bitcoin fell below $20,000 on June 18 for the first time since December 2020.
For Jeremy Fong, U.S. crypto lender Celsius was an ideal place to stash his digital currency holdings - and earn some spending money from its double-digit interest rates along the way.
"I was probably earning $100 a week," at sites like Celsius, said Fong, a 29-year civil aerospace worker who lives in the central English city of Derby. "That covered my groceries."
Now, though, Fong's crypto - about a quarter of his portfolio - is stuck at Celsius.
The New Jersey-based crypto lender froze withdrawals for its 1.7 million customers last week, citing "extreme" market conditions, spurring a sell-off that wiped hundreds of billions of dollars from the paper value of the cryptocurrencies globally.
Fong's long-term crypto holdings are now down about 30%. "Definitely in a very uncomfortable position," he told Reuters. "My first instinct is just to withdraw everything," from Celsius, he said.
The Celsius blow-up followed the collapse of two other major tokens last month that shook a crypto sector already under pressure as soaring inflation and rising interest rates prompt a flight from stocks and other higher-risk assets.
Bitcoin fell below $20,000 on June 18 for the first time since December 2020. It has plummeted around 60% this year. The overall crypto market has slumped to around $900 billion, down from a record $3 trillion in November.
The tumble has left individual investors across the world bruised and bewildered. Many are angry at Celsius. Others swear never to invest in crypto again. Some, like Fong, want stronger oversight of the freewheeling sector.
Susannah Streeter, an analyst at Hargreaves Lansdown, compared the turmoil to dotcom stocks crash in the
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