Crypto market observers remain pessimistic about Bitcoin’s immediate prospects, even after the cryptocurrency stabilized in value after a recent decline. The pessimistic view further confirm initial view that the worst is yet to come.

Bitcoin rebounded from a 7.3 per cent loss to $20,816 its lowest level since December 2020. Bitcoin was last traded at $22,470. Ether, the second most valuable token, rebounded from a loss of up to 10 per cent to $1,075, a fresh 15-month low.

Bitcoin hit a new 18-month low after crypto lender Celsius Network froze withdrawals and transfers citing “extreme” market conditions. Bitcoin fell 15 per cent on Monday, marking its biggest one-day loss since March 2020. Since hitting a record high of $69,000 in November, the cryptocurrency has slumped nearly 70 per cent.

“With the broader risk sentiment firmly negative the sellers have had it all their own way for a few days. It will take a shift in the overall risk sentiment to turn the price around significantly,” said Richard Usher of cryptocurrency firm BCB Group.

The slump in Bitcoin is likely to have an impact on companies in the sector. Coinbase, one of the largest cryptocurrency exchanges, said on Tuesday that it would cut 18 per cent of its workforce, or about 1,100 jobs, to keep costs in check amid volatile market conditions.