Bitcoin Dives to US$19k for the Second Time! Time to Dump Your Investments?
A second-time deep fall for Bitcoin is making the investors question their future investments
This year has proven a difficult one for all cryptocurrencies after experiencing several all-time highs in 2021. But particularly the year 2022 has seen plummets, plunges, and a whole lot of red. Still, some hadn’t yet conceded that the crypto was in a bear market. But the latest news of the crypto market’s north star, Bitcoin, may finally establish the market firmly in bear territory. Bitcoin fell below US$19,000 earlier today, breaching a critical threshold. At the time of writing, the Bitcoin price has come back above that level, still down 4% though, at a price of US$19,161.15. Just this year, the digital currency has fallen 58% and is down over 70% from its all-time high of US$68,789.63, which it hit in November after the 2021 bull run. The leading cryptocurrency faces market pressure as a possible recession is looming. In communication with CNBC, digital-asset-focused SEBA Bank’s head of research Yves Longchamp said, “Bitcoin continues to be under pressure as other assets are. The mix of high inflation, rising interest rates, and recession weigh on cryptocurrencies.”
Although some investors may have initially lauded crypto as an ecosystem independent from the centralized government’s economy, this year we have seen Bitcoin trends reflecting that of the global stock markets. Many of these stock markets are seeing losses. As we come to the midway point of 2022, the S&P 500 saw its worst first half of the year since 1970. The pressure on stocks has affected the price of Bitcoin, which has, in turn, affected the crypto market. There is also the issue of inflation, which is causing centralized banks to raise interest rates again, which is causing some unrest and talks of a recession. After plenty of hype and genuine good news in 2021, the year 2022 has only shown cryptocurrency volatility. The severity of the price crashes has also caused a liquidity issue among the blockchain tech companies. When Bitcoin fell below US$20,000 in mid-June, Jeffrey Gunlach, CEO of the investment firm DoubleLine Capital made it clear that he didn’t believe that to be the bottom for the coin. He stated, “I’m not bullish at US$20,000 or US$21,000 on Bitcoin. I wouldn’t be surprised at all if it went to US$10,000.”
We’ve found one company that’s positioned itself perfectly as a long-term picks-and-shovels solution for the broader crypto market Bitcoin, Dogecoin, and all the others. In fact, you’ve probably used this company’s technology in the past few days, even if you’ve never had an account or even heard of the company before. That’s how prevalent it’s become. Crypto investors are aware of the global cryptocurrency market cap has fallen down the US$1 trillion mark. The aggregate value of all tokens summed up to US$896.97 billion on June 17, 2022. The current BTC price is US$20,859.20 with a market cap of US$397.28 billion and a volume of US$32.60 billion. It is unbelievable for crypto investors to experience this drastic crypto crash from US$68k to US$20k. This is the first time since December 2018 that the Bitcoin reading of the indicator has dropped down the 30 thresholds. Bitcoin crypto crash happened due to multiple reasons such as the Celsius Network (CEL) took a fall of 70%, the US inflation rate has raised to 8.6% while affecting the economy with a massive sell-off on the weekend, and many more. It has been speculated that the BTC price will hit US$10k in 2022-2023 as the worst-case scenario for the entire community of crypto investors and tech companies relying on this cryptocurrency for payment transactions. The prediction is that after hitting the rock-bottom level of US$10k, Bitcoin may turn around for a comeback while reaching the US$50k zone.
Cryptocurrency experts have started mentioning that the tightening of Federal Reserve policy— raising the target for the federal funds rate to the range of 1.5% and 1.75%, as well as the shrinking of the balance sheet will create a huge impact on the change in BTC price. The transactions are paused and slowed down for the overflow. Thus, Bitcoin can push forward its price towards the US$10k zone, surpassing the current US$20k price level. Bitcoin crypto crash is experiencing a bear market with the downfall of the global economy. Long-term crypto investors are on the verge of selling their digital currencies, despite incurring a huge loss. It is said that BTC’s price has lost the 65% of its market value since November 2021. It should be reminded that the cryptocurrency price had dropped from US$19k to US$3k in 2018— a major fall of 80% in a year. The history maybe is repeated in the current cryptocurrency market in 2022-2023.
Crypto investors are set to experience the crypto winter in the nearby future with a crypto crash like Bitcoin or Terra in this bearish cryptocurrency market. The maximum of them is hopeful that after the drastic crypto winter, they will get to see the other bright side— crypto spring. Bitcoin will come back with hits over US$50k to drive substantial profit in wallets in the nearby future. Investors should carefully check the asset allocation while utilizing BTC tokens with a small amount. Crypto investors who are waiting for the investment opportunity must wait for the stable condition of Bitcoin to come out of the crypto crash.