Bitcoin Traded Below $20,000 for a Very Long Period Since 2020
Cryptocurrencies, digital currencies have become increasingly popular over the past several years. In 2018, there were more than 1,600 cryptocurrencies and surprisingly the number is constantly growing.
We can say that fiat currencies derive their authority from the government or some monetary authorities but any public or private entities do not back the cryptocurrencies.
Now let’s talk about “Bitcoin”, the most popular and valuable cryptocurrency. Bitcoin has a much more extensive track record compared to other cryptos, though it’s still in its relative infancy compared to the 200+ year history of the U.S stock market.
Bitcoin had a price of $7,167.52 on Dec. 31, 2019, and a year later, its price surged more than 300% to $28,984.98 leaving the audience and investors in a stance. It continued to surge in the first half of 2021, trading at a record high of over $69,000 in November 2021.
A college student, Merchan first bought bitcoin in 2014 when the price was around $600. Merchan got more interested and did research on bitcoin, particularly in its unique supply framework.
He said, “I found out that there was only going to be 21 million BTC ever in existence. So, I was like, ‘OK, if it’s already at $1,000 and there’s only 21 million ever going to be created in the world, that’s going to be huge. We’ve never really seen a currency of any sort have a restricted supply amount”.
“I’m a big believer that if it’s not in cash, you don’t really have that money because in crypto, anything can drop pretty dramatically overnight,” Merchan further shows delight.
After years of price fluctuations ranging between $100 and $900, bitcoin finally broke $1,000 again in January 2017. Prices doubled to $2,000 in mid-May and then skyrocketed to over $19,000 by December.
Let’s elaborate further for your ease that bitcoin doubled its value in 2021, but in January 2022 saw a big drop that erased almost all of the previous year’s highs. We saw bitcoin skyrocket to an all-time high of over $64,000 in the first half of 2021, then just as quickly fall back below $30,000 over the summer. Bitcoin hit another all-time high of over $68,000 in November, but by January 2022 had dropped back below $35,000.
“Global macro uncertainty combined with spectacular blow-ups in the crypto ecosystem has caused prices to fall at a rate that has surprised investors,” said Kunal Goel, a research analyst at Messari.
Bitcoin dropped below $20,000 for the first time since December 2020 and the largest digital token tumbled as much as 9.2% to $18,740, which marked a record-breaking 12th consecutive daily decline according to Bloomberg data.
Despite the persistent bear market, Bitcoin has struggled to keep its head up, with assistance from several psychological support points. However, its recent fall below $20,000 has kept it underneath the zone for a long period in the last two years.
The last time BTC traded below $20k for this long was two years ago, in Q4 2020. Bitcoin’s elongated period below the $20k level in 2020 was followed by the asset’s defeat of the zone, as it soared to a new ATH above $63k in the following months then.
Despite revisiting and occasionally trading below the $20k zone, BTC has always bounced back. This level has been the longest, the asset has seen.
But we are still hoping for the best to come and looking even further ahead, to 2030 and beyond the range of predictions with some saying it could still be worth millions at some point in the future.
The plus point is its limited supply that is steadily increasing demand by a greater number of investors
Looking at the whole scenario we can sum up the reading as investors and executives have been still anxiously watching the price of bitcoin in recent days, fearing a further drop may prompt forced liquidations of large leveraged bets in the markets.
It would eventually put more pressure on the price, worsening the credit crunch that has already struck large crypto lenders and traders.
But we, the crypto lovers are praying for the market to reach some new highs.