King crypto has gone below the $20,000 level, losing its price milestone achieved five years ago
Bitcoin finally lost the crucial $20,000 level where it had been holding for a while as the community hoped for a price reversal.
Bitcoin trading below $20,000
At the moment, the world’s flagship crypto is changing hands at $19,227 on the leading European Bitstamp platform, printing a long red hourly candle which pushed the price 6.58 percent down.
Prior to that, three days ago, the US Federal Reserve made another historic interest rate hike in a bid to rein in rising inflation in the country, when the consumer price index rose by 8.6%.
That was the biggest rate hike in almost 30 years – since 1994. The rate was increased by 75 basis points. The news back on the day it was announced made Bitcoin rise about 4 percent but then it slightly dropped.
The previous major rate hike was made by the Fed in the early days of May, when it was raised by half a percentage point. It was the biggest rise in 22 years – Bitcoin’s reaction was similar to the current reaction: first it remained stable, then started to fall.
Other factors that have pushed BTC below $20,000
Now, combined with other bearish factors – the red crypto market and its overall capitalization going below $1 trillion, along with multiple liquidations on the market, the stories with LUNA, Celsius crashing and 3 Arrows Capital filing for bailout – have pushed Bitcoin below the $20,000 level.
This was an all-time high for BTC reached in December 2017 followed by a crypto winter. It was the first major ATH for the leading digital currency, which saw other cryptocurrencies follow major highs.
Peter Schiff expects “a dead-cat bounce” from $8,000
Prominent Bitcoin critic, CEO of Euro Pacific Capital and SchiffGold, Peter Schiff who has been criticizing BTC for years, has taken to Twitter to share a Bitcoin chart, where he shows a likely fall of Bitcoin below the $10,000 level to test $8,000.
He tweeted that BTC could demonstrate a dead cat bounce off this level before it drops much lower. He warned Bitcoin holders that this could be their last chance to sell it as it held over $10,000.
This is not the first time this year that Schiff has shared an expectation of Bitcoin falling below $10,000. However, recently, as covered by U.Today, he tweeted that his bearish prediction for BTC collapsing to $20,000 and Ethereum plunging to $1,000 had come true by nearly 100 percent.
