Bitcoin fell below $ 20,000 for the first time since December 2020. It fell up 6% to $ 19,377.08 just before 10 am (Greek time), according to Bloomberg, while now trading at $ 19,314.5.
“Rising fears of a recession are dampening appetite for risky assets and this is why cryptocurrency traders remain wary of buying Bitcoin at these low levels,” Edward Moya, senior market analyst at Oanda, said in a June 16 note.
The US Federal Reserve raised its key interest rate by three-quarters of a percentage point on June 15 – the largest increase since 1994 – and central bankers signaled that they would continue to raise interest rates aggressively this year in the run-up to inflation. The higher interest rate environment has been detrimental to risky assets such as cryptocurrencies, contributing to Bitcoin slipping by about 70% from its all-time high in November.
The cryptocurrency market began to slide late last year, with the collapse of the blockchain Terra last month and the recent decision by cryptocurrency lender Celsius to halt withdrawals.
Strengthening the climate, the cryptocurrency hedge fund Three Arrows Capital suffered heavy losses and said it was considering selling or rescuing assets.
Bitcoin can “build a base around $ 20,000, as it did at about $ 5,000 in 2018-19 and $ 300 in 2014-15,” Mike McGlone, a Bloomberg Intelligence analyst, said in a June 15 note.
The encryption market is well below the highs at the end of 2021, when Bitcoin traded close to $ 69,000. The total capitalization of the cryptocurrency market is about $ 900 billion, up from $ 3 trillion. dollars in November, according to CoinGecko.
Source: Capital
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