Bitcoin came close to falling below $20,000 as investors continue to flee cryptocurrencies

The sell-off in cryptocurrencies deepened even further on Wednesday, with bitcoin sinking very close to the key level of $20,000.

Bitcoin plunged as much as 10% to an intraday low of $20,166, according to Coinbase data. It was last trading at $21,544.37, down about 2.6%, around 4:24 p.m. ET. The world’s largest digital currency has plunged nearly 70% since the peak of the crypto craze in November 2021.

Charlie Morris, founder of digital asset management firm ByteTree, said $20,000 was close to the peak of bitcoin’s last major bull run in 2017 and so “might prove to be a support level.”

“At $20k, bitcoin has made no money since the 2017 high, but that disguises the outsized returns over all prior time frames,” he told CNBC.

Digital tokens are in free fall as fears of climbing inflation, aggressive interest rate rises and liquidity issues at a key player in the crypto space have plagued crypto markets.

The Federal Reserve raised rates by 75 basis points, as was widely expected. Chairman Jerome Powell also signaled that another 0.75 percentage point hike could come next month, if inflation remains high.

Mostafa Al-Mashita, executive vice president of Canadian crypto firm SDM, said crypto has been caught up in the broader “risk-off environment” affecting markets.

By NC ScoutPublished On: June 16, 2022Categories: UncategorizedComments Off

About the Author: NC Scout

NC Scout is the nom de guerre of a former Infantry Scout and Sergeant in one of the Army’s best Reconnaissance Units. He has combat tours in both Iraq and Afghanistan. He teaches a series of courses focusing on small unit skills rarely if ever taught anywhere else in the prepping and survival field, including his RTO Course which focuses on small unit communications. In his free time he is an avid hunter, bushcrafter, writer, long range shooter, prepper, amateur radio operator and Libertarian activist. He can be contacted at [email protected] or via his blog at brushbeater.wordpress.com .