We felt it coming, it happened this weekend: for the first time in 18 months, Bitcoin fell below 20,000 dollars. In fact, it even went even lower, reaching $18,556. Some predict that the fall is not over and that the currency could sink to catastrophic levels.
Capo of Crypto was therefore right. The renowned cryptocurrency analyst, who predicted on Twitter last week that Bitcoin could drop below $18,000, was right. This weekend, the digital currency actually broke that milestone after falling 13.7%, reaching $17,593. This is its lowest level since December 2020. Shortly after, however, its value rose back to $18,556which is still a drop of 9.22%.
The $20,000 milestone was feared by investorsboth for its symbolism and for its impact on the overall cryptocurrency market. “Dropping below $20,000 proves that confidence in the crypto industry has collapsed and we are seeing the final rebounds”, explains Edward Moya, senior analyst at OANDA. Yet another proof that the crypto market is experiencing its darkest hours of its existence.
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Bitcoin is not done falling
As always, Bitcoin isn’t the only one that suffered a sharp drop over the weekend. Ether also posted chilling numbers, stabilizing at $988.52 after a fall of 8.84%. This is the final act of a particularly difficult week for the world of cryptocurrencies, which began with the shock announcement of the freezing of withdrawals, swaps and transfers by the platform Celsius Network.
This declaration was not, moreover, the only sign of general panic hitting the industry. Many companies in the industry have started mass layoffs, such as Coinbase Global Inc COIN.O Gemini and Blockfi. A situation all the more dramatic as we are not yet ready to see the end of it. According to analyst Michael Purves, Bitcoin should rise below $15,000 in the coming days.
Source: Reuters