A new approach to journalism

Crypto crash: How much money Pakistanis lost after Bitcoin’s fall?

Bitcoin tumbled Monday to an 18-month low under $25,000 as investors shunned risky assets in the face of a vicious global markets selloff, months after the cryptocurrency hit a record high.

Although the digital currency is banned in Pakiatan, people have lost huge amount of money in the latest crisis.

No exact amount of the losses incurred by Pakistanis was known but an entrepreneur’s tweet asking about it gave some idea how it may have affected the rich the middle classes.

When Shakir Hussain, an entrepreneur, asked reporters to work on the story about the impacts of the crisis on Pakistan, a couple of users revealed how their children lost half of the money they had lent from their parents.

Some users demanded action against Wakar Zaka, the social media influencer who has been tricking people into investing in digital currencies.

Zaka has reportedly been receiving money from people to include them in his WhatsApp and Facebook groups where he gives advice on how to become rich by investing in crypto currency.

AFP adds:

The unit took a heavy knock also from news that cryptocurrency lending platform Celsius Network paused withdrawals, citing volatile conditions.

World stock markets have plunged since Friday when data showed US inflation at a fresh four-decade high, increasing recession fears and sending investors running for safer assets like the dollar.

“It is not very surprising to see such a strong downturn as we have noticed an increased correlation over the last few years between traditional stocks, which have also tanked recently, and the cryptocurrency market,” noted XTB chief market analyst Walid Koudmani.

The world’s most popular cryptocurrency dived about 10 percent to hit $23,794 in morning London deals, striking a level last seen in December 2020.

The virtual unit has collapsed by 65 percent in value since striking a record peak $68,991.85 in November.

Investors on Monday sought safety with the US central bank seen likely to aggressively ramp up borrowing costs further to combat runaway inflation.

Bitcoin’s decline accelerated after the news from Celsius Network.

“Today we are announcing that Celsius is pausing all withdrawals, swap, and transfers between accounts,” the platform said in a statement.

Celsius made the move “due to extreme market conditions”, it added.

The total value of customer deposits had already shrunk by more than half to under $12 billion in May compared with the end of last year.

You might also like