The biggest cryptocurrency on the market, Bitcoin has crashed to the lowest level since early July. It has suddenly plunged to $18,935.
Bitcoin Has Crashed To the Lowest Level Since early July
Bitcoin reached its all-time high value of $69,000 in November of 2021. Since then, rough economic conditions have soured Bitcoin’s price along with the rest of the market.
The last time Bitcoin dumps below $19,000 was on July 4, when its price reached $18,600. At the time of writing, Bitcoin price trades at $18,900 with a 5% loss in the past day and seven days, respectively.
According to crypto analyst Justin Bennett, Bitcoin price was able to hold about a critical support zone as yesterday’s selling pressure intensified. The cryptocurrency was moving in a tight range and flirting with levels north of $20,000, but ultimately bears won the round leading to downside price action.
The situation worsened in the past 20 hours when the Bitcoin plunged by over $1,000. As a result, it dropped to a six-week low of just over $18,600 hours ago. Despite adding a few hundred dollars since then, BTC still struggles under $19,000. Thus, bitcoin has crashed to the lowest level. As such, its market capitalization has declined to $360 billion.
Ever since bitcoin lost the coveted $20,000 line at the end of last month, the asset had remained relatively quiet, with a few unsuccessful attempts to reclaim that level. A combination of macroeconomic and geopolitical news is pulling riskier assets down, including Bitcoin and stocks.
Bitcoin Price Feeling The Pressure Of U.S. Market
Bitcoin price is feeling the pressure of the U.S market as multiple factors appear to be causing investors to distance themselves from Bitcoin. As usual, the asset’s recent huge volatility is highly associated with the U.S. stock market. Following a turbulent trading session on Wednesday, stocks declined, in part because of worries that the Federal Reserve will continue to jack up interest rates.
Since U.S. Federal Reserve chair Jerome Powell’s remarks on August 27 were followed by a $1.25 trillion loss in U.S. stocks in a single day, the market has been in a bit of a rut.
Russia Oil Shutdown Takes Toll On Bitcoin Price
According to analysts, Bitcoin’s decline has increased following last week’s announcement that Russia shut down the Nord Stream 1 pipeline, blocking gas to Europe and unsettling markets. Despite this, Bitcoin aficionados remain unfazed.
Vitalik Buterin expressed his concerns over Bitcoin’s proof-of-work issuance model
In an interview with the journalist Noah Smith last week on security, governance, and consensus mechanism models, Vitalik Buterin expressed his concerns over Bitcoin’s proof-of-work issuance model.
“A consensus system that needlessly costs huge amounts of electricity is not just bad for the environment, it also requires issuing hundreds of thousands of BTC or ETH every year,” he said.
The future of Bitcoin after the ETH merge is uncertain. Regulation, energy concerns, and competition are just some of the factors at play. At a time when its largest competitor is about to claim a significant technical edge, inventors are wary of the potential economic risks.
Prince Philip of Serbia is bullish on Bitcoin
Prince Philip Karageorgevitch, Hereditary Prince of Serbia and Yugoslavia is a strong proponent of Bitcoin. Despite the volatility in the market, Philip is convinced that Bitcoin is the only cryptocurrency that has the potential to fix one of the biggest problems affecting the world: the problem of money.
“The reason why the world’s in such a terrible shape is because of the money. People think, “Yeah, money corrupts,” but actually, no, money is corrupted itself and that needs to be changed,” he said in an interview.