Bitcoin Drops to $20,000 as Crypto Crash Continues

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When does this stop?

Unfortunately, many investors who continue to see their portfolios depreciating in value face hell or a return to cryptocurrencies.

Bitcoin, the most popular digital currency, has fallen almost 10% to $20,737.24 in the past 24 hours, according to data from CoinGecko.

It’s down about 34% in the last 7 days. Prices are now at their lowest since December 2020.

Given the general decline and the volatility that characterizes the crypto industry, it is possible that the price could drop below the psychological $20,000 threshold in the next few hours.

In eight months, the value of bitcoin is down almost 70% compared to the all-time high of $69,044.77 hit on Nov. 10. The only good news for the digital currency is that it still accounts for 43.069% of the entire crypto market on its own. Evaluation

The valuation of the market depends on the development of Bitcoin. So it shouldn’t come as a surprise that a market that weighed just over $3 trillion in early November lost more than $2 trillion to the bitcoin crash.

According to CoinGecko, the crypto market was valued at just $926 billion at the time of writing.

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scandals

The reasons for the crash are the same: recession fears are prompting investors to liquidate riskier assets. It is believed that cryptocurrencies and technology groups are like that. And with analysts expecting the Federal Reserve to hike rates aggressively to fight inflation, investors are watching carefully how things play out.

Additionally, two major scams have left investors cold.

The first is the sudden collapse of sister tokens UST and Luna, despite their founders promising that their technology is solid and viable.

The second scam is crypto lender Celsius Network’s decision to freeze withdrawals and other transactions from its platform.

“The current bear market is entering a phase that coincides with the lowest and darkest phases of previous bears,” Glassnode strategists wrote in a note. “The market, on average, is barely above its cost base and even long-time holders are now being removed from the holder base.”

Ether, a native token of the Ethereum platform, fell more than 12.5% ​​to $1,079.58, with the second cryptocurrency by market cap, Ether, down 40.6% over the past 7 days.

The drop in meme coins such as Dogecoin and Shiba Inu is just as strong. Dogecoin has lost 36.4% of its value in the last 7 days and the Shiba Inu has lost 28%.

There is also a rush towards decentralized finance projects, or DeFi tokens, which should replace traditional finance. Cardano, Solana, Polkadot, and Avalanche coins are down between 23% and 40% over the past seven days.

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