According to CoinGecko, the most prominent cryptocurrency in the world plummeted by 3.5% in the last 24 hours. Bitcoin gave up all of its gains from last week as it fell below $20,000. BTC’s price on the market right now is $19,750, and the weekly gain is in the red with a 2.6% loss.
BTC moved toward a gradual and steady recovery last week. The leading cryptocurrency posted its biggest weekly gain in the previous nine weeks. It increased by 12% last week after experiencing its worst quarter in June.
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Recent declines in BTC have lowered investor confidence. But when the market reached the $22,000 level on July 8 and stabilized around the $21,000 to $20,000 mark, investors started to feel a glimmer of hope as the June 18 collapse below $17,600 grew further away.
However, Bitcoin is still 71.1 % below its all-time high record, which was set on November 10, 2021, or about eight months ago, and was $69,044.77. Moreover, it has decreased by 41.8 % so far this year, as per CoinGecko statistics.
After surpassing its downward resistance line during the trading day on July 7, Bitcoin saw significant trading volume. But now, its trading volume, by nomics statistics, is almost $46.58 billion, with a 1.62% loss in the last 24 hours.
On the other hand, Solana, the ninth-ranked cryptocurrency, has plunged to $33.35 after losing 5 % over the last 24 hours. While Ethereum, the second-largest cryptocurrency, has suffered a loss of 6.58% and is currently trading at $1,068 to CoinMarketcap statistics.
BTC is currently trading below $20,000 level on the hourly chart | Sources: BTC/USD price chart from Tradingview.com
The State Of Market, Cause Multiple Drops For Bitcoin
Although many have speculated that a market bottom may be near, there is still a great deal of economic uncertainty. Therefore bitcoin might have more room for decline. However, there is nothing to worry about because BTC has seen similar peaks and troughs in years past.
Given its bleak origins and a price below $10,000 as recently as July 2020, Bitcoin’s price has had numerous sizable falls since November. However, its new highs in 2021 and present level are still remarkable achievements.
Since the start of the year, the cryptocurrency market has been on a downward trend. However, as the market was getting closer to mid-June, the bears appeared to be becoming stronger.
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Beginning with the demise of algorithmic stablecoin TerraUSD and its related token LUNA, a variety of problems have plagued the larger cryptocurrency market in recent weeks.
Additionally, macroeconomic problems like high inflation and upcoming rate increases from the US Federal Reserve impact the cryptocurrency market.
Nevertheless, it’s unknown how long crypto’s slump will persist. This is because prices of cryptocurrencies have often increased after significant losses, although in some cases, it took a while for prices to reach new highs.
Featured image from Flickr, chart from Tradingview.com