Bitcoin is falling again as it fell to a weekly low, and alternative digital currencies are also suffering, as the Ethereum currency lost about 7 percent.
Bitcoin drops to a one-week low of $20,000
Bitcoin is falling again as the coin slumped to its weekly low below $20,000, altcoins are also suffering, with Ethereum losing about 7 % and the yen down by 8 %.
That pullback was just a few days ago when the major cryptocurrency managed to rally and drew a multi-week peak of $22,400, and while crypto investors were preparing for another round of gains, the situation changed and Bitcoin started gradually losing value again, reversing all of its gains in the past week. 2.6%.
Since last weekend, bitcoin has stabilized trading near $21,500 over two days, and as Sunday drew to a close the coin started dropping again to trade at around $20,000 on Monday. To the downside, it fell to $19,500 and settled near this level so far.
As of now, Bitcoin stands a few hundred dollars above that level, but its market capitalization is down to $375 billion.
Bitcoin erases last week's gains
Last week, Bitcoin witnessed a clear, gradual and steady recovery, which led to the optimism of investors about the crypto market, who lost confidence in digital currencies after its price fell below $ 17,600 on June 18, but with the return of the currency to decline again, doubts about the future of crypto increased in the coming months.
Bitcoin price is still down by about 71% from its all-time high of about $70K, which was recorded on November 10, 2021, and has also recorded a decrease of about 41.8 % from its value since the beginning of this year so far.
Pessimistic market condition
Although a lot of crypto experts have predicted that the market is very close to the bottom, there is widespread economic uncertainty that does not indicate that we are approaching the bottom of the market, so there may be more room for Bitcoin pullbacks, despite that dominating pessimism For many, however, the history of the leading digital currency is nothing to worry about as it has seen many similar highs and lows in the past years.
For example: The price of Bitcoin in July 2020 was less than $10,000 and the price quickly doubled within months until it reached an all-time high in November 2021 at around $70,000, however it fell strongly to lose more than 70% from its high .
Since the beginning of 2022 he entered the market Crypto In a bear market, but losses were limited in the first quarter of the year, but with the beginning of the second quarter to its end, the market incurred heavy losses due to many factors, whether they were macroeconomic factors and other factors related to the crypto market.
The Russian-Ukrainian war, accelerating inflation levels and the continuous interest rate hike by the Federal Reserve have all affected cryptocurrencies, and they were not alone, but the global stock market was greatly affected by these factors with historical losses, the crypto market was also affected by the lack of liquidity and the collapse of the backed stablecoin TerraUSD Its numeric code is LUNA.
A professional technical and economic analyst in global financial markets since 2004. He holds a Master’s in Business Administration from the American University in Cairo. He works as an economic writer and technical analyst for many international financial companies. He writes daily economic and technical analyzes for many Arabic and English websites specialized in the field of stock exchanges and financial markets.
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