If bitcoin falls below that level, it could end the game for cryptocurrency. And there’s only $ 87 off that point.
The world’s top-ranked cryptocurrency is just $ 87 in oblivion.
In the last 24 hours, bitcoin reached a low of US $ 20,087, but was trading slightly higher at the time of writing, at US $ 21,920.
However, several experts have warned that if BTC falls below the important $ 20,000 mark, it could mean a disaster for the blockchain.
A trader has warned that if bitcoin falls below $ 20,000 and ethereum below $ 1,000, there will be a “mass selling pressure” that will push prices even lower.
Another noted that once bitcoin fell below that price, it would have lost all the value it had gained in the last five years, from its 2017 high.
Arthur Hayes, former head of BitMEX, used Twitter to express his concerns.
“If these levels break, $ 20,000 BTC and $ 1,000 ETH, we can expect massive selling pressure in the spot markets as distributors are covered,” Hayes wrote.
“We can also expect that there will be some over – the – counter distributors who will not be able to cover themselves properly and could go belly up.
He continued on his Twitter thread: “As for the graphics, you better get your prayer book out of Lord Satoshi and hopefully the gentleman will show kindness to the soul of the crypto markets.
“Bc [because] if these levels are broken, you could also turn off the bc computer [because] your graphics will be useless for a while “.
In the same vein, Charlie Morris, founder of digital asset management firm ByteTree, believes $ 20,000 could be a level of support for bitcoin to bounce back.
However, if you exceed $ 20,000, all bets are off.
“It could prove to be a level of support,” he told CNBC.
“At $ 20,000, bitcoin has not made any money since the 2017 high,” he added.
Bitcoin and the ether token have suffered, as have the rest of the world’s cryptocurrency, as a result of economic turmoil and major cryptocurrency exchanges disrupting transactions.
Around noon on Monday, Celsius, based in the UK, pays interest on the cryptocurrency deposits, lends them and also sells its own witness, CEL, but ceased all activities around noon on Tuesday.
In a blog post, the company warned that it was “pausing” all withdrawals and transfers between accounts, adding: “Due to extreme market conditions, today we announce that Celsius is pausing all withdrawals and transfers. withdrawals, exchanges and transfers between accounts.
“We are taking this action today to put Celsius in a better position to meet, over time, its withdrawal obligations.”
All of their customers’ accounts are still frozen.
In response, the total market capitalization of the cryptocurrency fell sharply below US $ 1 trillion. At the time of writing, it was $ 924 billion.
In recent weeks, and especially in recent days, the cryptocurrency has been facing a revision of accounts, as fears are mounting over a global recession amid rampant inflation and the US central bank raising rates of interest.
On Friday, the data found that the US inflation rate had reached a new high: it rose to 8.6 percent in May, the worst since 1981.
Over the weekend, the cryptocurrency fell in reaction to the news.
This Wednesday, the US Federal Reserve is expected to raise its interest rate to combat rising inflation.
Economists predict that the rate will be raised to settle by 0.25 percent or 1.50 percent by July, and the central bank did something similar last month.
The cryptocurrency is closely aligned with the traditional stock market and in recent days, markets such as the Dow Jones have plummeted and fallen.
Read related topics: Cryptocurrency