Bitcoin(BTC), the largest crypto coin by market value, has plunged again, continuing to drop from its year high of around $68k in November 2021
Bitcoin(BTC), the largest crypto coin by market value, has plunged again below $20k, continuing to drop from its year high of around $68k in November 2021, as per Coinmarketcap. BTC was down 1.16 percent and was trading at $19,825.37 at the time of filing the copy. Meanwhile, Ethereum, a coin connected to the Ethereum blockchain network, fell 2.87 percent to $1,451.36, losing $41.60 from its previous close.
Why is Bitcoin falling again below $20,000?
Bitcoin has traded between $20,900 and $21,700 in the past week. Crypto industry experts have stated that it fell below its threshold level to $19,000 over the weekend as the market reacted to the hawkishness of financial regulators in U.S Jerome Powell’s 8-minute speech.
Not only cryptocurrencies but almost every financial asset took a hit. Some of the world’s richest men, like Jeff Bezos and Elon Musk, lost $6.8 billion and $5.5 billion respectively.
“Investors are keenly looking for improvement in the market, but the macro factors remain bearish. So, we might likely see a continuation of the bearish trend this week,” says Edul Patel – CEO & Co-Founder, Mudrex, a global crypto investment platform.
Interestingly, Bitcoin first got to $20k five years ago.
“Today’s price does not erase all the development and adoption in the past five years. Price is just a reflection of mass psychology, not progress,” says Changpeng Zhao (CZ), CEO, Binance crypto exchange.
However, Prashant Kumar, founder and CEO of weTrade, an Indian crypto platform, stated that the market continues to remain above the depth it had a few months ago. “The continued linkages with tech stocks may indicate cryptos’ eventual acceptance at par with technology stocks,” he said.
Sathvik Vishwanath, co-founder & CEO of Unocoin, another Indian crypto exchange, says, “The fall in prices is not restricted to bitcoin or the crypto sector alone, but it is seen across all major asset classes. Added to this is the fear that about 137,000 bitcoin from the Mt Gox exchange bankruptcy claim could get dumped on the market at once, which is keeping investors super cautious.”
According to Cointelegraph, Justin Bons, the founder and chief investment officer of the cryptocurrency-focused fund Cyber Capital, has stated that Bitcoin (BTC) is one of the worst cryptocurrencies and a speculative asset lacking in utility compared to other cryptocurrencies in terms of technological advancement.
Since Bitcoin is the most popular crypto coin, it has witnessed several rise and fall in the last few years. Expert has said that this roller coaster ride may continue for some more time.
