The cryptocurrency Bitcoin is on a historic low. Within a week, the Bitcoin price fell significantly. Ethereum is also in free fall, losing around 30 percent within seven days. This puts bitcoin below the magic mark of 20,000 US dollars.
Bitcoin price falls below 20,000 dollar mark
The cryptocurrency Bitcoin has been losing value rapidly for a short time and has now fallen well below the magic mark of 20,000 US dollars. As of June 20 02:00, one Bitcoin stood at an equivalent of 19,664.37 US dollars.
Last Saturday, June 18, 2022, the Bitcoin price fell below the important mark and even dropped below the value of 18,000 US dollars at times, but in the meantime the cryptocurrency has been able to recover a bit. On 01 June, the equivalent value of a bitcoin was still over 31,000 US dollars. Compared to the previous high of around 69,000 US dollars, which was reached in November 2021, the drop in value is simply gigantic.
The cryptocurrency Ethereum is also on a downward slide and, as of June 20 at 02:00, is at an equivalent of 1,055.31 U.S. dollars – about half the value of May 31 and just under a quarter of the record from November 2021 (around 4,800 U.S. dollars).
Inflation, interest rates and lost confidence
According to experts, inflation and related concerns of people, as well as rising interest rates, are mainly responsible for the historic decline of cryptocurrencies. People around the world have to cope with significantly less money. As a result, unnecessary spending is reduced. Just recently we reported that the number of subscriptions to music streaming services is also drastically declining.
At the same time, general confidence in the crypto market is also declining, as many lesser-known currencies have seen sharp price drops. This includes crypto lending company Celsius Network, which has had to suspend remittances and bank transfers entirely due to recent price fluctuations in the market. The impact for the crypto market, in the short and long term, cannot yet be assessed.
Since then, prices have been going down noticeably. Now, cryptocurrencies such as Bitcoin and Co are generally associated with strong fluctuations, but here – at least currently – a clear trend is emerging.