BTC falls below $25k this Monday in between weaknesses in the macroeconomic scenario and systematic risk from inside the crypto space as per the reports. This digital asset has slid for twelve straight weeks, from nearly $49,000 in March this year to below $25,000. Despite this, there is no one who is saying this to be crypto winter 2022. So if you are more interested to know what happened to bitcoin today, then keep on reading.
BTC Falls Below $25k: A Detailed Report
It offered some hints of bottoming out in mid-May, but thinking about the inflation that has hit the United States data released last week did little to cushion falling sentiments.
The CPI (Consumer Price Index), the most vividly tracked benchmark for inflation, increased 8.6% on the YoY (Yera over Year) basis in May, topping expectations that would decrease to 8.2% from 8.3% in April as reported.
Such reports contributed to a decline in Asian markets on Monday. The Hang Seng of Hong Kong decreased by nearly 3.5%, the Nikkei of Japan decreased by 3.01%, and the Sensex of India decreased by 2.44%. Futures of the United States technology-heavy index Nasdaq opened at 2% lower, while S&P 500 decreased by 1.65%.
As per the price charts, BTC had powerful support at the $29,000 mark, but the decline below that level now implies that the digital currency could decrease to its 2017 high of close to $20,000.
Readings on the RSI (Relative Strength Index) which is an avenue used by traders to measure the magnitude of the price shift of an asset – decreased under 30, recommending a reversal could be on the way as short-term purchasers react to technical reports.
Elsewhere, digital currency lender Celsius halted withdrawals stating “extreme market conditions,” feeding crypto Twitter issues that the company may not hold enough liquidity to pay out its depositors.
BTC Falls Below $25k: A BTC Price History
The above chart is enough to show you how the price of this most famous crypto went all these years. The value of Bitcoin again attained its all time high in the last year as the price exceeded more than 65,000 USD in February, April, and November last year. The first two were the results of events that involved Tesla and Coinbase respectively. The announcement of Tesla, that the company has acquired 1.5 billion U.S dollars’ worth of the virtual coin along with the IPO of the biggest crypto exchange of crypto boosted mass interest. The most renowned digital currency in the world, however, went through a notable correction in April after the speculation on the regulation levied by various governments across the globe.
Another reason as per experts was an electricity blackout in the Xinjiang region of China. This unexpected occurrence led to a decrease in the hash rate of BTC like how many BTC were being mined and it potentially spooked the investors into selling their crypto assets. According to a research conducted in 2020 based on IP addresses from the hashers that utilized a specific BTC mining pool, over half of all the BTC mining happened in China. The third hike in price was associated with the release of a Bitcoin ETF in the US.
Bitcoin’s Price Outlook: Is It A Potential Bubble?
Digital currencies have several metrics accessible that enable forecasting, if only because it is rumored that only a few digital currency holders own a large percentage of accessible supply. These large holders who are termed as “whales” – are said to make up 2% of anonymous ownership accounts, while owning approximately 92% of BTC. On top of this, most of the people who use crypto related services globally are retail clients in place of institutional investors. This implies outlooks on whether Bitcoin prices will reduce or grow are hard to calculate, as shifts from one large whale are already having a prominent effect on this market.
BTC falls below $25k on Monday (13.06.2022) and this fall is its all time low from 2020. The crypto market was already in red from May and now the most popular crypto faces a massive downfall. All Bitcoin predictions failed miserably. Crypto experts cannot assert anything now regarding its recovery. If you are wondering when will crypto go back up 2022, there is no precise answer to this considering the volatility of this market. So we hope by now your doubt about why crypto is down today has been answered.