Bitcoin Price Falls: $20,000 Next Target?

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Bitcoin price falls. Recent moves have pushed bitcoin to a new yearly low. Is the next goal $20,000?

Why is Bitcoin currently falling?

We have already reported a drop in bitcoin price over the last two days. Today he also does significant damage. In the last 24 hours, BTC is down 16.5 percent at press time.

bitcoin m-cap | see 430.412.884.867 see 22,580.55 18.50%

At dawn, the oldest cryptocurrency had a market cap of around $27,200 but has now fallen to $23,000. Also, a large chunk of the crypto market is falling as usual.

Among the top 100 cryptocurrencies, not a single currency has seen gains in the last 24 hours. At least iFinex’ Unus has been the winner with the Sed Leo token for the last seven days.

The token, which currently ranks 15th by market cap, is only growing by six percent – but so is the top end of the flagpole.

This begs the question: why is bitcoin falling so fast on June 13th?

Interest Rate Changes: Crypto Price Drivers

At the beginning of May, the US Federal Reserve announced the second interest rate hike in the current calendar year. This is a continuation of the rate change introduced in 2022.

In 2020/21, the FED operated a zero interest rate policy, which was justified by an economic emergency during the Corona crisis. The result was cheaper credit. They also flooded the markets with “cheap money” to be used for investments.

The crypto market is also suitable for such investments. This year’s change in interest rates is causing a significant outflow of funds from many markets, particularly those considered risky such as the crypto market.

This was particularly noticeable after the Fed hiked rates by 50 basis points in May. As a result, Bitcoin fell to $31,000. Later, the Terra crash dealt another blow to the market.

BTC fell again. Up to $28,000 this time too. The price then corrected for several weeks and stabilized at the $30,000 level. Now it crashes again.

Again, the change in interest rates could be the main reason for this. A few days ago, the European Central Bank (ECB) announced that it would follow the Fed’s example and raise interest rates.

In the euro area, on the other hand, only an increase of 0.25 percent is planned – half of the US measures.

This is how low the price of Bitcoin was in December 2020. However, there is currently no sign of improvement. The next FOMC meeting begins tomorrow. The Fed committee examines the interest rate.

Experts suspect that there will be a third rate hike this year. This will likely happen later in the year, subject to public approval. In principle, however, this is possible in the next two days of the meeting.

What are the reasons for fuel price dumping?

Obviously, however, suddenly falling prices cannot be attributed solely to changes in interest rates. The aftermath of the Terra crash seems to be even deeper. This is also indicated by current developments, which show a trend towards Tether and the USD coin.

This, coupled with negative news from the cryptocurrency industry, could spook some investors. Credit platform Celsius announced today that it will halt all transactions and remittances. Users cannot currently withdraw their cryptos.

Such news came from the world’s largest crypto exchange. Binance halted bitcoin withdrawals at 2:00 p.m. The function should be available again after half an hour.

In fact, it’s still a long time coming. Binance has once again made a bad impression on the crypto scene. The company has long been accused of withholding money transfers in the event of adverse events.

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