Bitcoin hits below $20K, may reach $10K level this year

On Sunday, it was hovering around $19,975 per digital coin which is more than a 60 percent drop in its value

August 28, 2022

After Jerome Powell’s keynote address, Bitcoin plunged below $20,000

The world’s largest cryptocurrency Bitcoin has plunged once again below $20,000 after showing some stabilization in the last few weeks. Soon after Federal Reserve Chair Jerome Powell‘s keynote address, Bitcoin initially showed little reaction to the remarks, and later plunged sharply. According to experts, the Bitcoin price will hit $10,000 before recovering to the $30,000 level.

On Sunday, it was hovering around $19,975 per digital coin which is a more than a 60 percent drop in its value since last year when it reached a record-high of $68,000 in November.

Bitcoin prices had stabilized around the $23,000 to $24,000 level after plunging below $20,000 in June. The prices of Ethereum and other leading digital currencies have also rallied in the past two months, leading to hopes that this nascent market may have reached its bottom.

But the optimism could be premature, and fleeting. Companies with direct ties to the crypto landscape continue to struggle, according to media reports.

Bitcoin, despite the hype about it being digital gold, has turned out not to be an asset that performs well when inflation pressures are mounting and interest rates are spiking.

Reports last month suggested that Bitcoin may tumble to $10,000 this year.

A latest Bloomberg ‘MLIV Pulse survey‘ revealed that the Bitcoin price is heading back to $10,000. Shark Tank’s Kevin O’Leary has also stated that the Bitcoin price has not hit bottom yet.

Bitcoin has seen its worst-ever days in recent months amid the economic meltdown, leaving several crypto exchanges and trading platforms winding up operations, laying off people, and freezing fresh hirings.

The global cryptocurrency market lost at least $670 million in the April-June quarter (Q2), and 97 per cent of the losses were due to hacks and scams.

[With Inputs from IANS]

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