Bitcoin Price Hits Late-2020 Levels As Crypto Market Suffers Fresh Blows

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The latest price drop in Bitcoin’s price is the latest blip on the market as a number of factors play a role. High inflation is one, which is making it less attractive for investors to make risky investments like bitcoin. According to the U.S. Consumer Price Index, inflation was at 8.6% on Friday. This is not the first time cryptocurrencies have been hit by inflation, but this latest dip is causing investors to panic and sell their holdings. bitcoin price hits late-2020 levels as crypto market suffers fresh

Experts are predicting that bitcoin will continue to experience price volatility. The cryptocurrency is already trading in a tight range, ranging between $19,000 and $23,000 for the past few weeks. However, this recent price fluctuation is not indicative of a sustainable future for bitcoin. Experts say that this volatility is part and parcel of the crypto market’s evolution. There will be more blips and bumps in the road, and it will be hard for anyone to predict when and why the cryptocurrency market will recover.

The recent price dip has hit the smaller ecosystems, causing concern among backers and investors. The market cap of these tokens is approaching $800 billion. As a result, the bitcoin price could fall to late-2020 levels, putting it well below $20,000. Analysts warn that this will test the investor’s resilience. If the bitcoin price falls to $20,000.30, this would be a record low.

While the cryptocurrency market has been experiencing a recent downturn, it entered the year with a relatively strong performance. It began in the $30,000 range and increased through the year, topping an all-time high of $68,000 on Nov. 10. However, it has since fallen back to a lower level. There are no indications that a rally will occur anytime soon. But with the recent price plunges and the resulting volatility, it is important to keep an eye on the news.

The recent market crash has triggered fears about Bitcoin’s price falling further. Many investors see it as a risky speculative asset. As a result, a “risk-off” trade has brought it down to less than $20,000, a two-thirds drop from its mid-November peak of $69,000. Ethereum, meanwhile, has fallen as low as $1,258. While the price of Ethereum has recovered slightly in recent weeks, it is still vulnerable to further losses.

As a result, investors should avoid sinking all of their money into cryptocurrencies. Many experts advise clients to focus on other financial priorities, such as paying off high interest debts or saving for an emergency fund. A long-term holder will benefit more from a bottom in Bitcoin than a short-term investor.

A recent decline in bitcoin prices coincided with a broader selloff across the crypto market. In November, the total market cap reached $3 trillion, which was a high for cryptos. By Monday evening, the market was down to $975 billion. Bitcoin is still a hot commodity, but it may not be for much longer.

During the month of August, bitcoin fell by 14 percent. It was dangerously close to a bearish engulfing pattern on the monthly chart. Nevertheless, it has yet to breach the horizontal support line on the daily and weekly charts. If it breaks this barrier, it will likely head higher, possibly reaching the mid-$800s. The major altcoins, on the other hand, are all in decline mode and have significantly pared their post-Fed gains.

Investors expect more pain in the crypto market before the market reaches the final bottom. In addition to the price decline, the Merge of Ethereum and Bitcoin is scheduled for mid-September, which may wipe out ETH’s monthly gains. But the adoption of cryptocurrencies is still positive and this move is encouraging for investors. However, investors are still unsure whether the crypto market can keep up its momentum.

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