Bitcoin Value Plummets To $20,000, Might Plunge Below $10,000 This Year

After showing signs of stabilization for a few days, the world’s biggest cryptocurrency Bitcoin dipped below $20,000, continuing to drop nearly 60 percent from its year high. At the time of writing, the value of the cryptocurrency was $19,984. Bitcoin hit the $48,234 mark on March 28 this year.

The prices of the cryptocurrency were stable at around $23,000 to $24,000 level after it fell below $20,000 in June this year. Similarly, the prices of other popular cryptocurrencies including Ethereum got stable during the same time, leading to hopes that the market might have reached its lowest, and will grow henceforth.

Investors Predict Heavy Losses

Bitcoin’s fall happened after a weak day on Friday for the cryptocurrency, which saw a decline as Wall Street slumped with all benchmarks closing at over 3 percent lower. The value of these risk assets dropped after Federal Reserve Chief Jerome Powell warned of a swift end to its rate tightening. His cautions on interest rates have made some investors predict more loss in equities.

"Bitcoin broke below 20,000 as investors expect a weekend full of pessimism from Jackson Hole to drag down sentiment," said Edward Moya, senior market analyst at OANDA.

Bitcoin To Plunge Below $10,000

If the reports are to be believed, firms with direct ties to the crypto scene are struggling to survive. Bitcoin, despite being the most valued cryptocurrency, has been able to become an asset that performs well even when inflation and interest rates spike. Reports have even suggested that Bitcoin might fall to $10,000 this year.

As per Bloomberg’s 'MLIV Pulse survey’, Bitcoin price will be going back to the $10,000 mark. Experts believe that the cryptocurrency’s value will recover to the $30,000 level after hitting the $10,000 mark.

In recent months, Bitcoin has seen its worst dips amid the economic turmoil, forcing many crypto exchanges to call it quits and lay off their employees. The cryptocurrency market has lost around $670 million in the second quarter of 2021, out of which 97 percent of losses were due to scams and hacks.