Why Crypto Prices Crashed on Saturday

After a terrible week for cryptocurrencies, the weekend isn't off to a good start either. Fear that there will be continuing fallout from the potential collapse of the Celsius Network and Three Arrows Capital, which have been facing challenges all week.

It doesn't help that Bitcoin (CRYPTO: BTC) has fallen 7.5% in the last 24 hours as of noon ET, Ethereum (CRYPTO: ETH) has dropped 7.9%, and BNB (CRYPTO: BNB) is down 7.4%. Bitcoin has fallen below the $20,000 mark and is trading at $19,043 as I'm writing and Ethereum is below $1,000 at $993.24. These may only be psychological levels, but traders see them as important milestones for crypto values.

The news continues to center around Celsius Network's collapse, which was driven by the platform's aggressive search for yield. Early reports are showing that Celsius lost money on the collapse of Luna as well as Stakehound as it tried to offer users higher yields for their cryptocurrency than were available anywhere else on the market. Unwinding the web of positions has led to increased selling and panic in the market.

Source Fool.com