For the first time since December 2020, Bitcoin has dipped below the crucial $20,000 mark. Ethereum has waded into the choppy waters of three digits for the first time since January 2021.
At the time of writing this article, Bitcoin was trading at $19,236 after having lost 8.27% of its value. Ethereum down by 8.74%, as per data from CoinMarketCap, is changing hands at $998.43. The fresh fall has deepened the crypto market’s anxiety amid tighter money conditions. There is evidence of strain as crypto firms brace for a further downturn. BTC, the largest cryptocurrency by market value, dropped for the 12th consecutive day.
Edward Moya, a senior market analyst at Oanda, believes fears of a recession are crippling the appetite for risky assets. As such, crypto traders are cautious about purchasing Bitcoin at these lows. Bitcoin had been avoiding such a move for quite some time, and it had been reserved for altcoins – notably Ether. Crypto commentators say the latest dip is because of liquidity problems at 3AC – Three Arrows Capital and Celsius, as well as the overall macroeconomic environment.
Rekt Capital, a popular crypto trader, and analyst, tweeted that Bitcoin needs more volume and volatility to match volume levels at previous Bear Market Bottoms at the 200 MA. He highlighted that seller volume is above-average for the first time this week. But more is needed for final capitulation. Sam Callahan, an analyst at Swan Bitcoin, believes BTC could drop as low as $13,800 – representing a drop of more than 80% from its all-time high. It had previously been seen in December of 2018 when Bitcoin dived to nearly $3,000.
BTC’s fall comes during a thin weekend trading. It has sealed 37% losses for the first two weeks of June. June 2022 has emerged as the worst month for the crypto industry.