The value of Bitcoin has slumped below $20,000 (£14,700)

The price of a bitcoin has fallen below $20,000 (£16,400) amid deepening turmoil in the cryptocurrency markets. The cornerstone of the digital asset markets slipped to levels not seen since November 2020 on Saturday morning. Bitcoin and other cryptocurrencies have been hit by several factors including rising inflation, which has prompted interest rate rises by central banks. This, in turn, has dampened investor appetite for riskier assets such as cryptocurrencies and affected global stock markets, with the previously high-flying tech sector affected in particular. Last week the UK and US central banks raised rates in an attempt to quell rising prices, putting further pressure on digital assets. Cryptocurrency is the term for a group of digital assets that share the same underlying structure as bitcoin: a publicly available “blockchain” that records ownership without having any central authority in control. Crypto’s backers have said the sector represents a good investment because, for instance, it carries low fees and, unlike conventional currencies, is not tied to governments. However, its detractors say a lack of regulatory oversight or implicit government support makes it susceptible to scams and wild fluctuations in price. The crypto market is also suffering internal problems that began with the collapse of Terra stablecoin whose value was supposed to be pegged to the dollar. Its failure shook faith in digital assets triggering a wave of selling that has been exacerbated by wider interest rate moves