Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bitcoin Plunges Below $20K in Early Saturday Trading, Extending the Bear Market

Cryptocurrency Jun 18, 2022 04:14
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Daniel Shvartsman

Investing.com – Bitcoin plunged below $20,000 in early Saturday morning trading, as the continuing crypto bear market took several leading cryptocurrencies past key sentimental or technical levels.

At 4:00am ET (800 GMT), Bitcoin was trading just below $19,200, 9% below its price 24 hours earlier. Ethereum traded just above $1,000, down 9% from the day prior. Cardano, Solana, and Investing.com BNB Index were all down 8 to 10% as well, continuing what has been a nightmare week and quarter for the sector.

Key stablecoins, especially Tether, had not moved noticeably in early Saturday trading, with much focus on whether it can retain its value and how wide the impact would be if it didn’t. Tether saw its aggregated value drop to below $70B this week, an 8-month low (2838377), as it saw redemption pressure (2837462).

Bitcoin took its biggest hit at approximately 2:45am ET, dropping more than 4% in a 15-minute span. It has dropped more than $10,000, or over 35%, since last weekend, after a bevy of crypto sector implosions, from Celsius’ shutting down withdrawals to Binance temporarily pausing withdrawals to, most recently, Babel Finance shutting down withdrawals.

$20,000 has been talked about as a key sign of support from a technical perspective, and is symbolically significant given Bitcoin (and the sector as a whole) trade at levels last seen in early December 2020, wiping out nearly the full bull rally. They are also currently below the highs of 2017, the prior major Bitcoin bull market. And in a sector where symbolism matters, the clearing of another major round number so soon after dropping past $30,000 may resonate, with the same principle applying to $1,000 for Ethereum.

This general range has also been watched closely given the concerns over leverage in crypto trading and the possible compounding of margin calls and forced selling. MicroStrategy (NASDAQ:MSTR), the tech company run by notable bitcoin bull Michael Saylor, has long been suspected to be at risk of a margin call if Bitcoin falls below $21,000.

With the market reaching that point decisively this weekend, it seems likely there are more twists to this cycle, one way or another.

Bitcoin Plunges Below $20K in Early Saturday Trading, Extending the Bear Market
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email