Bitcoin plummets again and falls below $20,000, lowest since late 2020

Update (06/18/2022) by LL

Bitcoin has been going through a period of bad luck in recent months, and everything indicates that the situation could get worse. After dropping 21% in three daysthe world’s leading cryptocurrency plummeted again and was sold for less than US$ 19,000 this Saturday (18).

Right now, Bitcoin is costing just over $19,000, according to data from CoinDesk. The value corresponds to a 7.94% drop in 24 hours, and is the lowest price in the crypto asset’s history since mid-2020.

Experts indicate that there is a broader meltdown of the cryptocurrency market being driven by rising interest rates, inflation and economic uncertainty spurred by the war in Ukraine.

The decline has also been accelerated in recent weeks by the collapse of two major cryptocurrency projects, Terra-Luna and Celsius, sowing doubts about the stability of the global cryptocurrency market.

From March 2020 to November 2021, the price of a single Bitcoin rose twelve times to $64,000. Since that spike, the digital currency has lost around $900 billion in value.

The steep selloffs show how interconnected and complex crypto markets have become in recent years, RA Farrokhnia, a professor at Columbia Business School specializing in fintech, said in an interview with The New York Times. As investors flee to less risky assets, “this creates a ripple effect on the contagion effect,” he said. There is a high rate of volatility.

Bitcoin was designed to transform the way people transact. Digital currency relies on a decentralized network of computers that record each transaction in a permanent record known as a blockchain. The registry cannot be altered or controlled by anyone, including governments.

Bitcoin (BTC) is trading, on Monday afternoon (13), below $ 24,000, the lowest value in 18 months, after a 21% drop in just three days. The cryptocurrency was being valued at around $30,000 last Friday (10).

The virtual currency reached US$ 23,675 this Monday. The value of Bitcoin dropped 65% since reached an all-time high in November 2021. It is also worth remembering that in 2022 to cryptocurrency had its worst start to the year since 2012.

Market analysts point out that fears of a sharp rise in interest rates in the United States and a recession that affect stock markets around the world after US inflation rose more than than expected influenced this drop.

The total amount invested in cryptocurrencies has dropped below $1 trillion for the first time since February 2021. analysts believe that BTC will easily pass through this crisis and must remain the most valuable digital asset in the virtual market.


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This drop also pulled together the entire digital asset market. In the last three days, Ethereum (ETH) dropped from $1,700 to $1,198 on Monday. The coin also reached a value of $4,878 in November 2021 when BTC was at an all-time high.

Original text (01/11/2022)

The world’s most popular cryptocurrency is experiencing its worst start to the year since 2012. Bitcoin it recently dipped by as much as 6%, putting it briefly below the $40,000 ($39,774) mark. This represents a 40% drop compared to its all-time high of over $66,000, which was followed by a further pullback.

As of early Monday afternoon, the digital asset was hovering around $41,320 in value. Bitcoin’s inevitable boom-and-bust cycle has experts worried again.

Jay Hatfield, CEO of Infrastructure Capital Advisors, suggests the coin could end 2022 below $20,000. Fiona Cincotta, senior financial markets analyst at City Index, told Bloomberg:

[O Bitcoin] got off to a pretty shocking start to 2022. There’s a lot going on We know Bitcoin is volatile, but even so we’re seeing some really big moves.

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Other cryptocurrencies like Dogecoin, whose value is based almost entirely on the news cycle and social media, also dropped. Dogecoin, which peaked at 74 cents in May, hovered around 14 cents early Monday afternoon.

Bitcoin appears to be approaching a situation called the “death cross”, which is when the 50-day moving average dips below its 200-day equivalent. However, the death cross is not such a reliable indicator, since since October 2019 the digital asset has already encountered it at least three times. In each case, the value of the cryptocurrency quickly recovered afterwards.

One factor in the decline appeared to be mining instability in Kazakhstan, where in recent days security forces have cracked down on protesters outraged by rising energy costs and the government of President Kassym-Jomart Tokayev.

More than 160 deaths and 8,000 arrests were reported after troops opened fire with live ammunition in Almaty, when Tokayev ordered security forces to fire without warning in a public speech.

The attempt to suppress the demonstration resulted in a widespread internet blackout, cutting off Kazakhstan-based mining facilities from the global network. About a fifth of Bitcoin’s processing is based there. Operations were seriously disrupted from 5 to 6 January.

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