Bitcoin Dives Below USD 20,000

Source: Adobe/Microgen


Bitcoin (BTC), the most popular cryptocurrency and cryptoasset, dropped below USD 20,000 for the first time since December 2020, while the second-largest cryptoasset, ethereum (ETH), is on the verge of breaking the USD 1,000 level for the first time since January 2021.

At 08:12 UTC, BTC trades at USD 19,260 and is down 9% in a day and 34% in a week, ETH trades at USD 1,004 and is also down 9% in a day and 40% in a week.

As reported, analysts considered the USD 20,000 for BTC and USD 1,000 for ETH levels as key prices to watch.

If these levels break, “massive sell pressure” can be expected in spot markets as dealers hedge themselves, and this could even cause some unhedged over-the-counter dealers to “go belly up,” former BitMEX CEO Arthur Hayes warned this week.

“As far as the charts go, you better get out your Lord Satoshi prayer book, and hope the lord shows kindness on the soul of the #crypto markets. [Because] if these levels break, you might as well shut down your computer [because] your charts will be useless for a while,” he said.

However, Galaxy Digital CEO Mike Novogratz said that he believes BTC and ETH are “much closer to the bottom” than stocks which he said could fall another 15% to 20%, but investors should proceed with caution anyway.
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