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Bitcoin fell below $ 20,000 for the first time since 2020

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  Bitcoin

Bitcoin has reached its lowest level in the current downturn market. According to CoinMarketCap, BTC fell below $ 20,000 on Saturday morning. $ 20,000 is the threshold that is considered as a vital support level for the digital currency with the highest market value. Currently, the price of live bitcoin is $ 19,057.34 and its 24-hour trading volume is $ 28,262,779,835. Bitcoin has lost 9.67% in the last 24 hours.

Bitcoin fell to its highest level in 2017

Bitcoin has reached its lowest level since December 2020, reaching below $ 20,000 for the first time. As digital currency market anxiety deepens amid tougher money conditions, more evidence of pressure is emerging in the industry. According to Bloomberg, the largest digital currency in terms of market value has fallen for 12 consecutive days.

Fear of a growing recession paralyzes the appetite for high-risk assets, prompting digital currency traders to be wary of buying bitcoins down here. The flow of news has been terrible for the cryptographers.

Edward Moya, Senior Market Analyst at Oanda.

The world of crypto is about to get worse. Although the $ 20,000 bitcoin milestone is primarily symbolic, experts predict that falling below this level could lead to a “forced dissolution wave.”

Extreme volatility and a lack of liquidity in the bitcoin market have made it difficult for large-scale cryptocurrency investors to maintain their assets. As a result, they will be forced to close their positions in bitcoin derivatives because they do not have enough collateral. Such events will certainly only add to the decline in the price of bitcoin and lead to further liquidation.

On June 15, the Federal Reserve raised its benchmark lending rate by three-quarters of a percentage point, making it the largest increase since 1994. Inflation. A higher-rate environment has been detrimental to high-risk assets such as Bitcoin, which is down more than 70 percent from November last year.

Atrium’s $ 1,000 support level has also declined at the time of publication, putting the digital currency sector in a more dangerous position. According to CoinMarketCap, Atrium Live is currently trading at $ 991.64, up from $ 13,621,714,966 in the last 24 hours. Atrium has dropped 9.67 percent in the last 24 hours.

According to Arthur Hayes, former CEO of BitMEX, $ 20,000 and $ 1,000 represent price levels for BTC and ETH, respectively, which, if exceeded, would result in “significant selling pressure”. The market value of all digital currencies has fallen by about 5% in the last 24 hours.

On the other hand, low-level perforation may lead to a jump in the price of bitcoin, as has been done in previous downtrends. According to Bloomberg Intelligence analyst Mike McGlown, the price of bitcoin may be supported by around $ 20,000 based on historical data.

The crypto market suffers more

Following the collapse of the Terra blockchain and the recent decision of Ramzarz lender Celsius Network Ltd. Withdrawals, a market that had been less consistent for months due to Federal Reserve expectations, are now showing signs of wider unrest.

Since then, bitcoin and other cryptocurrencies have been steadily declining with the help of investors who withdrew hundreds of millions of dollars from decentralized funding amid concerns about a worsening downturn.

That sentiment was boosted by the crypto fund Three Arrows Capital, which reported significant losses and said it was considering selling assets or grants. According to Golsnood, even long-term investors who have avoided selling are under pressure.

The crypto market fell 80 percent from its peak in late 2021, when bitcoin traded around $ 69,000 and investors raised money for each speculative investment. According to CoinGecko, the digital currency market is currently worth about $ 900 billion, down from $ 3 trillion in November.

Given the sentiment in the digital currency markets, the unknowns are currently the most threatening. The resurgence of counterparty risk is a reminder that even things that seem accurate are not always measurable. Risk is the things that remain after you have covered everything.

The digital currency party is coming to an end, according to the Wall Street Journal. The crypto section was based on arrogance, passion and optimism. These days, with increasing losses and declining jobs, all three are facing shortages. The cry of Bitcoin supporters against the opposition was to “enjoy being poor.” Those who did not invest allowed the future of finance to pass them by.

Cryptocurrencies were among the first assets to be sold as markets collapsed and inflation hit the global economy. Since Bitcoin peaked in November, nearly $ 2 trillion worth of bitcoin – more than two-thirds of all previous cryptocurrencies – has been cleared.

The crypto market is no stranger to boom and bust, known in business as “winter.” However, many investors and employees are experiencing this crypto recession more severely than before. Some digital currency solutions and companies may no longer exist after the dust settles.

The fall is affecting investors around the world, including in El Salvador. Bitcoin has been the legal tender in Central America for nine months, and the country has invested millions of dollars.

However, the recent crypto crash has raised further concerns about the rules, especially after it was revealed that nearly $ 100 million of public money had been used to buy bitcoins – each made by the president with a tweet. He welcomed it.

The government bought 2,300 bitcoins for $ 103 million in a bitcoin reduction. They are now halved due to the devaluation of the currency. However, the finance minister dismissed the criticism, claiming that “there is very little financial risk.”

However, Bitcoin enthusiast President Nayib Bukele remains optimistic. On Wednesday, Mr Bukele hinted that El Salvador might buy more bitcoins. Despite Mr. Buckle’s enthusiasm, the terrestrial reality in El Salvador does not seem to be encouraging for bitcoin acceptance. According to a survey conducted by the University of El Salvador, more than 60% of respondents still prefer to keep the dollar instead of bitcoin.

As the cascading effects of each new downturn in the crypto market occur, it is difficult to say when bitcoin, ether, and the entire digital currency market will end. Today, with the sharp decline of Bitcoin and Atrium, significant losses are inevitable. Only time will tell how much their losses affect the overall digital currency industry.