Where Is The Bottom For Bitcoin?
The Tokenist | Jun 23, 2022 04:14AM ET
The Bitcoin (BTC) price recently plunged below the $20,000 mark for the first time in almost two years after record-high inflation and fears over a potential economic recession spooked crypto investors.
The world’s largest cryptocurrency fell 9% to less than $19,000 recently, the same level it traded at in November 2020. Bitcoin price slumped more than 56% since the start of the year and remains down more than 70% from its peak of nearly $69,000 set in November 2021.
The decline expanded to other crypto assets as well, with the second-largest Ethereum (ETH) also tumbling notably to hit levels below $1,000. Elsewhere, Ripple (XRP) price is down over 60% year-to-end while Litecoin (LTC)—which is says the firm is 10x over collateralized however, and that the talk of a potential margin call is “much ado about nothing.”
Summary/h2
Bitcoin price is trading sharply lower this year in response to lower liquidity and aggressive rate hikes delivered by central banks to curb inflation. It has become clear that when liquidity is “taken away”—which is what is happening right now due to hawkish policy by central banks—Bitcoin and similar assets face severe pressure.
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