Bitcoin Drops Below $20K

The largest cryptocurrency in the world, Bitcoin, has once again fallen below $20,000 after showing some signs of stabilization over the past few weeks. This is due to Federal Reserve Chair Jerome Powell’s keynote address.

Following Powell’s comments, there was at first little indication of a reaction. However, things quickly turned around, and on Sunday, Bitcoin was hovering about $19,975 per digital currency, representing a more than 60% decline in value from last year, when it hit a record high of $68,000 in November.

After falling below $20,000 in June, bitcoin prices had stabilized around the $23,000 to $24,000 range.

In the past two months, the prices of Ethereum and other major digital currencies have also increased, raising the possibility that this emerging market has bottomed out.

However, the optimism may only last a short while. According to media reports, businesses with direct ties to the cryptocurrency landscape continue to struggle.

Despite the hoopla that Bitcoin is the “digital gold,” it hasn’t shown to be an asset that does well when inflation pressures are high and interest rates are rising.

According to reports from last month, Bitcoin could drop to $10,000 this year. Kevin O’Leary of Shark Tank has also admitted that the value of bitcoin has not fallen yet. The value of Bitcoin will drop to $10,000 before rising to $30,000, according to experts.

In recent months, due to the financial crisis, Bitcoin has had some of its worst days ever, leading to a number of cryptocurrency exchanges and trading platforms closing their doors, laying off staff, and freezing new hires. . In the April–June period (Q2), the global bitcoin market lost at least $670 million, with scams and hacks accounting for 97% of the losses.