Bitcoin’s black weekend takes it back to its value of a year and a half ago, before returning to $20,000 in the last session.
Bitcoin returns to levels of late 2020
The macroeconomic situation weighed heavily on traditional markets, and the drivers are still the monetary policies of central banks, aimed at combating inflation that shows no sign of stopping.
On Friday, Wall Street experienced one of the most volatile sessions in recent times.
At the end of the session, the New York Stock Exchange saw a good performance of the main indices, although the Dow Jones did not regain the 30,000 mark. The Nasdaq did better, closing at +1.43%.
A sigh of relief from the American stock exchange after weeks that have been in the red.
The crypto markets were not saved from the storm that brought BTC back to the value of 17 December 2020 (a year and a half ago) by touching 17,000.
In this year and a half, the leading digital currency first reached heights of $40,000 and later $60,000, but has now fallen back, partly due to the macroeconomic crisis and the aggressive monetary policy of the Fed and ECB.
Many analysts in the industry continue to believe that as far as Bitcoin is concerned we are still hopeful, there is blind faith in the algorithm and despite the global environment it will return to those levels. In the meantime, it will be necessary to understand where the bottom will be.
The current situation is causing losses to the Millenial generation, who statistically have only been approaching Bitcoin for a few years and entered at already high prices.
Earlier today, BTC climbed back to $20,000, although this important support was already broken on Saturday.
The entire cryptocurrency market is in a strong bear phase
The alarming fall in crypto over the last week has wiped out as much as $400 billion, and the sector has been losing huge percentages over the last six months.
The temporary halting of transactions by Celsius and the death of the Terra ecosystem have helped to undermine the sector, which is now suffering from this trend in digital currencies.
Investor Jeff Gundlach, stated:
“I’m not bullish on that $ 20,000 or $ 21,000 on Bitcoin. I wouldn’t be surprised at all if it hit $ 10,000”.
Arthur Hayes, co-founder of the Bitcoin and cryptocurrency exchange BitMEX, refutes Gundlach’s theory and warns of huge selling pressure if Bitcoin’s price falls below $20,000.
All is not lost. The algorithm cannot stop and the foundations are solid. While there are those who expect an ominous future, there are also those who believe that Bitcoin is near the bottom and will return to the $60,000 mark and beyond, it is only a matter of time.