Bitcoin price lost $20,000 support and as of Saturday morning it was trading at $19,035 according to the specialist website Coindesk.
This value represents a decrease of 6% compared to the previous day and is a continuation of the downtrend streak that started on June 12th.
Consequently, the rest of the cryptocurrencies in the market such as cardano, xrp, dogecoin, solana and ethereum suffered sharp declines.
The breach of the $20,000 minimum threshold, for the first time in history, indicates that the cryptocurrency has lost support in the market cycle. Specifically, the market cycles that the cryptocurrency has achieved so far based on the mechanism of reducing cash emissions into the network by “halving” or halving.
It should be remembered that every four years the amount of bitcoin issued in each block is halved, which happened three times.
As reported by CriptoNoticias, these cycles have impacted the market and each new cycle brings a higher price cap than the previous cycle.
So, for example, when the bitcoin price first crossed $1,000 during the 2017 bull run, it never went back from that level, which was the high of the previous cycle. In this upside, bitcoin hit a new high of $20,000 and this was the floor at risk.
This new drop affects the 2,301 bitcoins that the El Salvador government supposedly bought for a $103 million investment and which is now estimated at just $44.8 million. However, there is no official data if part of it was sold, as recently stated by the Ministry of Finance, Alejandro Zelaya.
Moreover, most of those who are involved in the cryptocurrency mining business are already operating at a loss because the value of the cryptocurrency does not cover the minimum necessary to cover the operating costs of their computers’ high electricity consumption.
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