Bitcoin Has Fallen to Its Lowest Price in 18 Months
On Jun 13, 2022
Bitcoin has fallen to its lowest point in over 18 months as the US inflation rate continues to rise. The Bitcoin hit a value below $25,000 on Monday morning. Analysts are attributing the fall to increasing concerns about the impact of inflation on cryptocurrencies, with some predicting that Bitcoin could fall as low as $14,000 in the coming months. Others believe that the current slump is simply a natural correction after last year’s dramatic price increase and that the cryptocurrency will continue to grow in value over time.
The price of Bitcoin has been struggling over the past few days to break past the resistance at $30,000. Today, the coin plunged all the way down to $25,000 before recovering somewhat. Many analysts are attributing this recent dip to the fact that many institutional investors have been waiting for a clear regulatory framework from governments around the world before investing in Bitcoin and other cryptocurrencies. So far, no definitive decisions or regulations have been made which is causing some investors to remain on the sidelines.
Similar to Bitcoin, other major altcoins have also experienced a sharp decline. Ethereum (ETH) and XRP have both fallen below their respective USD 1,300 and USD 0.35 support levels. ADA has also fallen sharply, testing the USD 0.462 level.
The global crypto market has taken a hit this week due to Bitcoin fall with the total market cap dropping 20% from $1.27tn to $1.03tn according to CoinMarketCap. This drop can be attributed to Bitcoin’s fall below the $25,500 mark today.
With the value of Bitcoin and Ethereum dropping significantly in the past few days, it looks like this could be a rough week for the crypto market where Bitcoin could potentially drop below $20,000. If these prices drop, the market cap of digital tokens would sink below $800 billion. This will be a far cry from the nearly $3 trillion at its peak.
In recent weeks, cryptocurrencies have begun to mirror the behavior of traditional markets. After a period of high volatility and price swings, cryptos have started to stabilize in tandem with stocks and other risky assets. While there is still significant speculation and risk associated with digital currencies, this move could be seen as a sign that they are becoming more mainstream. As investors become more comfortable with crypto, its value is likely to increase in the future.
As the price of Bitcoin falls to new lows, investors are wondering where the cryptocurrency is headed. Many experts believe that this is not the bottom for Bitcoin and that it will continue to fall in value. Despite this, hedge funds are investing in Bitcoin as a way to protect themselves against inflation which is currently at multi-year highs. This could be seen as a sign of confidence in the cryptocurrency, even as it continues to lose value.