According to Tradingview, the world’s most popular cryptocurrency, Bitcoin, hit a new low of $20,828 at the start of the week. BTC saw a 16.54% drop in its value within a matter of hours, or almost $5,000.
Bitcoin, the most popular cryptocurrency and largest in size, is also known for its dramatic rises and falls. BTC rose to an unprecedented high of $69,000 in November 2021 and then fell to under $30,000 at the beginning of 2022.
You may also like these related readings| Bitcoin Holders Long-Term Realize March 2020 Losses as BTC Crashes
Bitcoin’s value peaked above $30,000 on June 1, 2022, but dropped below that the next day. It currently trades below $22,000 It is due to TerraUSD (a stablecoin) breaking its $1 peg, and Luna falling.
In addition, it reflects global financial uncertainty driven by increasing inflation as investors seek to sell “riskier assets” such as cryptocurrencies.
The March 2020 Bitcoin Crash is indicated by the 3-day Bitcoin Chart
A 3-day Bitcoin chart based on the current state of BTC markets indicates that there will be a repeat of March 2020’s crash. Bitcoin’s popularity as a safe-haven asset began to wane in March 2020. In just two days, it had lost half its value.
The cryptocurrency plunged below $4,000 after opening week at $9,000 above. However, the cryptocurrency had rebounded to $5,400 at the close of U.S. market hours.
Source: BTC/USD chart from| Source: BTC/USD chart from TradingView.com
Joe DiPasquale (CEO of BitBull Capital) stated that investors moved their cash into cash to protect themselves from the worldwide coronavirus pandemic.
He further added that Bitcoin’s potential as a safe-haven asset is being questioned due to this steep decrease. However, he feels that it’s too soon to see any connections between Bitcoin and other asset types.
Reason Behind Bitcoin Plunging To New Lows
One factor contributing to bitcoin’s new lows is the halting of all withdrawals, transfers, and swaps between accounts by Celsius.
Celsius, which is both a DeFi platform as well as one the most prominent crypto lenders, has created significant mistrust in Bitcoin markets.
Related Reading | A Rich Father, Poor Dad Author Has a Change of Heart About Bitcoin BTC Drops to $23K
According to the network, withdrawals, swaps and transfers between Celsius clients have been halted. This An announcement was made in the early hours of June 13, following Bitcoin’s slide below $24,000 and the whole crypto market losing about $250 billion in only seven days.
As the company’s announcement stated:
We are making this announcement today to inform Celsius that all Swap and withdrawals will be halted. This is to ensure that Celsius can continue to fulfill its withdrawal obligations over the long-term.
Featured Image from Flickr. Chart by TradingView.com