HomeCryptocurrencyBitcoin drops below $20,000 for the first time since 2020

Bitcoin drops below $20,000 for the first time since 2020

Bitcoin fell below $20,000 for the first time since December 2020. It is currently around $18,330. In the context of monetary tightening, it can be seen that the internal pressure of the cryptocurrency has deepened.

Bitcoin continues to drop, dropping to $18,330 for 13 days in a row. On the 15th, the Fed announced that it would raise interest rates by 3 percentage points and raise interest rates to between 1.5% and 1.75%, the largest since 1994, and said they will continue to increase interest rates actively this year to curb inflation. 

As a result, the high interest rate environment has impacted risky assets like cryptocurrencies, causing Bitcoin to drop nearly 70% from its all-time high in November last year.

In a report published on the 16th, OANDA senior market analyst Edward Moya pointed out that intense recession fears will reduce appetite for risky assets and make cryptocurrency traders more cautious about buying bitcoin at low prices.

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Mehmet is one of the administrator of Teknonel. As a software developer, he loves to share his knowledge in related topics. He is highly familiar with the editorial process from the inception of an article idea, through the iterative process, publishing, and performance analysis as well as product reviews.

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