Bitcoin falls below $20 000 for the first time since 2020 | Fin24

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Bitcoin falls below $20 000 for the first time since 2020 | Fin24
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Bitcoin dropped below $20 000 for the first time since December 2020 as evidence of deepening stress within the crypto industry keeps piling up against a backdrop of monetary tightening. | Fin24

Bitcoin fell as much as 6% to $19 377.08 on Saturday. The largest token by market value has fallen for 12 straight days. Ether breached the $1 000 mark briefly and dropped to $999.86, the lowest since January 2021, before paring losses.

The Federal Reserve raised its main interest rate on June 15 by three-quarters of a percentage point - the biggest increase since 1994 - and central bankers signaled they will keep hiking aggressively this year in the fight to tame inflation. A higher-rate environment has been deleterious to riskier assets like crypto, contributing to a roughly 70% slide in Bitcoin from its all-time high in November.

Bitcoin may “build a base around $20,000 as it did at about $5,000 in 2018-19 and $300 in 2014-15,” he said in a note June 15. “Declining volatility and rising prices are earmarks of the maturing digital store-of-value.”

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