Bitcoin‘s price continues to tumble against the backdrop of a weakening stock market and rising inflation, breaching the December 2020 low and dragging ether and other cryptocurrencies down with it.
The first cryptocurrency plummeted to $19,000 on June 18 morning. As a result, BTC fell below $20,000 for the first time since December 15, 2020. Bitcoin’s price began to drop on June 6, from $31,000, and peaked at $19,698 on June 19.
The digital asset market’s total capitalisation dropped to $376 billion, with daily trading volumes of $40.34 billion.
Bitcoin was followed by Ethereum, which fell to $995 before climbing to $1,048.
The current crypto winter differs from the previous one in that cryptocurrency is plunging alongside tech stocks as the general economy appears to be unstable, inflation is rising, and a full-fledged recession appears to be on the horizon.
On June 18, Kraken CMO Dan Held claimed on Twitter that Bitcoin has chosen the worst-case scenario:
“I have seen the worst moments in the history of Bitcoin. We are on the path of maximum pain. Those who survive will receive the title of hodler (from the meme-word hodler – an investor holding cryptocurrencies at all costs. – Bits.media).”
At the start of the Bitcoin decline cycle, economist Peter Schiff predicted a price of $3,000 for Bitcoin :
“If BTC could fall 70%, from $69,000 to less than $21,000, it could just as easily fall another 70%, to $6,000. Given the excessive leverage in the crypto industry, imagine the forced selling that will begin. In this case, $3,000 is a more likely price target.”
At the same time, Arthur Hayes, the founder and former CEO of the BitMEX crypto exchange, predicted a massive sell-off of cryptocurrencies if Bitcoin falls below $20,000 and Ethereum falls below $1,000.
The expert bases his theory on the analysis of data from the Deribit exchange on options, thinking that a break of these levels in BTC and ETH will result in heavy selling pressure and the onset of a protracted crypto winter.
