Selloff Pushes Bitcoin Price Below $20K

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– Bitcoin has now lost 72% of its value since its peak in November, after the price fell below $20,000 on Saturday. And Ether slipped below $1,000. The cryptocurrency’s sell-off was partly driven by concerns — shared by stock traders — about inflation and the Federal Reserve’s moves to slow rising prices, the the wall street journal reports. “Bitcoin breaking the $20,000 price level was a long come, given the pessimism we have in the market,” a market analyst at AvaTrade said. The last time Bitcoin was below $20,000 was November 2020, per CNN.

Ether, which is the second-largest digital token, fell almost 10% on Saturday, hitting $975, its lowest level since January 2021. This coin has lost 80% of its value compared to its all-time high, also set in last November. Additionally, the industry is feeling the effects of the recent $60 billion collapse of the Terra-Luna and Celsius tokens, which heightened doubts about the long-term stability of the digital currency. The AvaTrade analyst said the effects of Terra’s collapse will be felt for some time. Currency exchange Coinbase announced layoffs this week.

The cryptocurrency boomed earlier in the pandemic, helped by stimulus payments from investors. The price of Bitcoin increased 12 times between March 2020 and last November, per CNN, to reach $64,000. A retired investment adviser from Ohio who invested $10,000 in bitcoin in 2020 told the Log she plans to sit on it. “I’ve seen a lot of cycles. I’ve been watching this for 45 years,” said Wayne Sharp. “Humans just make the same mistakes over and over again.” (Read more bitcoin stories.)

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