The world’s most popular cryptocurrency fell about 13% to $23,694 at around 8 a.m. Monday, hitting December 2020 levels. Bitcoin’s slump has prevented it from reaching $40,000 since April 28.
Bitcoin kept swinging between $29,000 and $32,000, between May 28 and June 11, however, last Saturday it started a slight dip touching $28,000 again, and by Sunday night, June 12, the asset had already dropped to the $25,000 mark.
in the last 24 hours, The maximum value obtained is only about $28277.20 and the minimum recorded so far is about $23,370.03. As of 7:27 AM, the coin was down to $23417.26.
This mark causes a difference of 25.8% from the maximum of the past seven days, $31,000. While when compared to the historical value of Bitcoin, which is $69,000, the losses increase to 66.6%.
Global markets were shaken on Monday by fears of a sharp rise in US interest rates and a recession, after the release of higher-than-expected US inflation figures on Friday.
“The correlation between the stock markets and bitcoin” continues to gain traction, said AvaTrade analyst Naim Aslam.
The value of the virtual drive has fallen 65% since it reached an all-time high in November 2021.
By 2021, the emerging sector attracted more and more players from conventional finance, whose appetite for risk was driven by the accommodative policies of central banks around the world.
But the rate hike by the US Federal Reserve, in its attempt to combat hyperinflation, is throwing its weight on the markets.
The collapse of Bitcoin leads to the decline of other cryptocurrencies. Ethereum is down -17.23% in the past 24 hours and is now $1,209.57, while Tether has lost 0.13% of its value and is positioned at $0.99 per asset.
The US Dollar (USDC) also fell above the $1.00 mark, after losing 0.08% of its price in the short term, and the price of BNB (Binance) fell to $220.74, losing 14.66% of its value.
Cryptocurrencies continue to collapse initially driven by the crises in Russia and Ukraine, which are generating insecurity due to economic policy measures in the United States, as well as the confinement in China.
However, inflation data from the United States has been added to the list, which worries investors and prevents them from risking their capital in the virtual world.
Besides, stock markets in various countries have also fallen and Bitcoin is expected to reach $20,000.
Judging by the price chart, Bitcoin has a strong support at the $29,000 mark, but a dip below that level now means the cryptocurrency could drop to its 2017 high of nearly $20,000.