LONDON/NEW YORK—Bitcoin recovered on Wednesday after diving to an 18-month low, buoyed by the U.S. Federal Reserve’s tough stance on inflation even in the midst of a market meltdown this week after crypto lender Celsius froze customer withdrawals.
The world’s largest cryptocurrency fell as much as 7.8 percent to $20,079.72, its lowest since December 2020. It has lost about 33 percent against the U.S. dollar since Friday, dropping more than 50 percent since the beginning of the year. It has slumped about 70 percent from its record high of $69,000 in November.
Bitcoin was last down 1.31 percent at $21,669.37.
The digital currency sector has been pummelled this week after Celsius froze withdrawals and transfers between accounts, stoking fears of contagion in markets shaken by the demise of the terraUSD and luna tokens last month….