Bitcoin Drops Below $20,000 for the First Time in Six Weeks

Bitcoin’s price slumped further as it fell below the $20,000 mark after a long time. The price fall resulted in $400 million in liquidations. The bearish factors are at the fore, and other coins also struggle to rise. CryptoPotato reports that Bitcoin shed $4,000 during the last week; a two-week price slum followed a two-month long price rally. The crypto market crashed earlier this year, and the cryptocurrencies suffered a considerable blow. Bitcoin’s price fell below $20,000 after being constant at the $21,500 mark yesterday. The alternative coins, including Ethereum, SHIB, and AVAX, have also struggled. Ethereum dropped below $1,500 after a week-long decline; it rose above the $1,700 mark two days ago before sliding again. The market situation has worsened as the global crypto market cap dips below $1 trillion for the first time in months.

Investors have suffered a lot

Millions of investors globally lost significant amounts after the crypto crash. CryptoPotato reports that above 125,000 crypto traders are involved in a $400 million liquidation. Bitcoin’s market has become bearish in the last 24 hours, and investors are apprehensive. Several other coins, including XRP, Dogecoin, and Solana, have also had a rough run this week. Analysts predict a bear market for the next year and a half; the recovery might take a long time. The experts have attributed several factors to the market’s slump.

Powell’s speech influenced the market

The Fed Chair Jerome Powell’s speech on the current economic factors and the center’s initiative to curb inflation has negatively affected the entire crypto market. Powell emphasized the central bank’s policies to fight inflation and improve the current economic factors. The hopes of a price recovery took a severe hit, and a bullish market might be far-fetched.