Bitcoin Plunges Below $20,000 For First Time Since 2020

Bitcoin has fallen below $20,000 which it had been holding for a while with the community hoping for a price reversal.

Currently, Bitcoin is trading at $19,227  on the leading European Bitstamp platform, printing a long red hourly candle which pushed the price 6.58 percent down.

Three days back, the US Fed Reserve once again hiked the interest rate to tame the country's growing inflation, when the consumer price index went up 8.6 percent.

It is the biggest rate hike in almost 30 years. The interest rate was increased by 75 basis points. On that day, Bitcoin rise by 4 but then fell.

The previous major increase in interest rates was made by Fed during the first days of May.  That was the largest hike in 22 years- the reaction of Bitcoin was similar to the current one: first, it held steady and then started falling down.

Along with the 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 the bailout – have pushed Bitcoin below the $20,000 level.

Back in 2017 December, Bitcoin recorded a historic high of $20,000 followed by a Crypto winter. It was the first big ATH for Bitcoin, which allowed other Cryptocurrencies to follow to major highs.

Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice