Bitcoin prices finally broke the $20,000 mark on June 19th, a Sunday to settle at $20580. This is almost a 17% gain after it plummeted to new lows on the previous day. The rally happened after it touched its lowest point since 2020 November. By the time the news hit the headlines, the official BTC price stood at $20383.
This surge in price is indicative of the risk that traders are willing to take while the market is still dealing with the fallout of Three Arrows Capital and Celsius. Celsius is a well-known name in the crypto lending sector. According to Jordi Alexander of Seleni Capital, buyers with cash have been waiting in the wings to buy cheap coins. It is up to them to decide if they want to wait and buy when the price is lower by 20%. If they decide to wait, they may have to pay a higher price by the same amount.
According to him, the most important question to ask is whether the forced selling that has happened so far is at an end. He wondered if there are more sellers who are selling due to distress. Even though BTC prices dropped below the $20,000 level to touch $17601, it was not a number many traders thought they would see.
ETH, the second-biggest currency by market cap, also enjoyed a rally. It rebounded from an all-time low of $880 and had a 20% gain. It was trading at $1133. As of now, BTC is 56% lower that its high and ETH has lost close to 70% in value.