Selloff Pushes Bitcoin Price Below $20K

Other cryptocurrency collapses combine with worries about economy to shake market
By Bob Cronin,  Newser Staff
Posted Jun 18, 2022 2:50 PM CDT
Bitcoin Drops Below $20K, Ether Under $1K
A bitcoin symbol is presented on an LED screen during the closing ceremony of a congress for cryptocurrency investors in last November in El Salvador.   (AP Photo/Salvador Melendez, File)

Bitcoin has now lost 72% of its value from its high point in November, after the price dropped below $20,000 on Saturday. And Ether slipped below $1,000. The cryptocurrency selloff partly has been prompted by concerns—shared by stock traders—about inflation and the Federal Reserve's steps to slow rising prices, the Wall Street Journal reports. "Bitcoin breaking the $20,000 price level was a long coming, given the pessimism that we have in the market," said an AvaTrade market analyst. The last time Bitcoin was under $20,000 was November 2020, per CNN.

Ether, which is the second-largest digital token, fell almost 10% on Saturday, hitting $975, its lowest level since January 2021. That coin has lost 80% of its value from its record high, also set last November. In addition, the industry is feeling the effects of the recent $60 billion collapse of tokens Terra-Luna and Celsius, which increased doubts about digital currency's long-term stability. The AvaTrade analyst said the effects of the Terra collapse will be felt for a while. The currency exchange Coinbase announced layoffs this week.

Cryptocurrency boomed earlier in the pandemic, aided by investors' stimulus payments. Bitcoin's price increased by a factor of 12 between March 2020 and last November, per CNN, to $64,000. A retired investment adviser in Ohio who made a $10,000 investment in bitcoin in 2020 told the Journal she plans to sit on it. "I've seen a lot of cycles. I've been watching this for 45 years," Wayne Sharp said. "Humans just make the same mistakes over and over again." (More bitcoin stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.