Bitcoin Falls Below $20,000 for the First Time Since 2020

Evidence of stress within the industry keeps piling up against a backdrop of monetary tightening, as evidenced by the drop in the price of bitcoin.

The price of the virtual currency fell to $19,377.08 in Hong Kong. The largest token has fallen for 12 days in a row. After briefly breaching the $1,000 mark, ether fell to the lowest level in over a year, before recovering.

Edward Moya, senior market analyst at Oanda, said in a note on June 16 that traders are cautious about buying Bitcoin at the current lows. The news flow has been bad for the industry.

The Federal Reserve raised its main interest rate on June 15 by three-quarters of a percentage point, the biggest increase since 1994, and central bankers signaled they will keep hiking aggressively this year. A higher-rate environment has contributed to a 70% slide in the price ofBitcoin from its all-time high in November.

A market that started sliding late last year on expectations of a less accommodative Fed is now showing signs of distress, after last month's collapse of the TerraBlockchain and the recent decision by Celsius Network. Three Arrows Capital suffered huge losses and said it was considering asset sales or a rescue. According to researcher Glassnode, even long-term holders are coming under pressure.

Despite the piercing of the level, historical data shows that the token may find support around $20,000, as previous selloffs show where the token usually finds points of resilience.

The entire market is underwater.

He said in a note that a base of $20,000 may be built as it did in the previous two years. There are signs of the maturing digital store-of-value.

There was a time when the market was worth $69,000 and traders poured cash into speculative investments. The total market cap of cryptocurrencies is less than it was in November.

The unknown unknowns are the most significant at this point in time, according to a note by three people. Not everything that matters in risk management can be measured. After you think you have thought of everything, you need to be aware of risk.

With assistance from Emily Nicolle.