Bitcoin hit its lowest price since 2020 today, figures show, as a crash precipitated by “extreme market conditions” dragged the flagship currency into the depths. The pressure on leading cryptocurrencies came from fears that leading lender Celsius would become insolvent and followed an announcement on Monday that the firm would temporarily pause its operations. The low point has come almost exactly one month after the Terra Luna collapse rocked the market in May and will have left investors anxious to understand how much further it could tumble.
Can bitcoin drop any lower?
Bitcoin has dropped an additional six percent today, according to analysis from CoinMarketCap, with its current value scraping close to its next support level.
BTC’s latest price is the first time the coin has ever fallen below $25,000, meaning it has lost vital support.
Given it is still trending down, the next support is $20,000, and fear gripping the market could conceivably see it meet this price.
Analysts have caught on to the bearish fervour gripping the market, citing several factors dragging bitcoin down.
Bitfinex, a cryptocurrency exchange, released an analysis today that explained BTC is moving with the market.
The coin is not doomed, Bitfinex said, as it urged people to keep the “bigger picture” in mind.
The firm said: “Fear has gripped financial markets as concerns over rising inflation and the efficacy of imminent interest rate hikes weighs on investor sentiment.”
“Central Banks have little room for manoeuvre other than to reverse policies that have been so accommodative to stocks and other assets over the past decade.
“As a so-called risk asset, bitcoin is moving in tandem with the palpitations of incumbent markets.
“Hodlers should instead focus on the bigger picture of an alternative financial system destined to emerge through the course of this decade.”
Other analysts are similarly bullish about the coin’s prospects.
Marcus Sotiriou, an analyst at UK-based digital asset broker GlobalBlock, said the experience likely wouldn’t deter investors.
He said: “Unfortunate events with lenders like Celsius and other crypto firms will not prevent savvy investors from investing directly into mainstream cryptocurrencies.
“The intrinsic value of borderless, permissionless and blockchain-native assets will continue to thrive in the long term.”
While bitcoin was notably hammered by this week’s crash, it is far from the worst impacted currency.
Every other coin with BTC in the top five exchange listing on CoinMarketCap is currently trending down.
Ether, bitcoin’s closest competitor, has dropped to $1,199.19, a change of -31.87 percent over the last seven days.
USD coin and Tether have dropped below the $1 mark, while BNB lost 20.61 percent of its value, stooping to $222.31.
The information in this article does not equate to financial advice. Anyone considering investing in cryptocurrency should understand the risks involved.