Bitcoin dives below $19K once again, crypto market loses $55B

Bitcoin dove below the $19,000 level on Thursday once again, retesting the critical support level that was seen on June 18, as the crypto market fails to climb back from the bear market territory.

The price of Bitcoin plummeted to $18,921 at 0930GMT, its lowest level since December 2020. The world's largest crypto by market size was at $18,123 as of 1225GMT for a 4.8% daily loss.

Ethereum, the world's biggest altcoin by market value, saw its price diving to $1,011 at 1115GMT. It was trading around $1,023 at 1225GMT.

The total value of the cryptocurrency market fell to $852 billion as of 1055GMT, which is down $55 billion, or 6%, from $907 billion at 2015GMT on Wednesday. Total value stood at around $854 billion at 1225GMT for a daily decline of 5.1%

The market's total value is significantly down from the $3 trillion market cap that was recorded in November.

The recent selloff comes as a result of the aggressive rate hiking cycle from central banks around the world, which fuels fears among investors that monetary tightening could cause a recession in the global economy.

On Wednesday, U.S. Federal Reserve Chair Jerome Powell said slower economic growth is a possible and likely outcome of dealing with high inflation, while European Central Bank President Christine Lagarde said she does not believe the world is going back to a low inflation environment.