Bitcoin Dips Deep; Entire Market Underwater

 Bitcoin Dips Deep; Entire Market Underwater

On Monday, June 15, 2022, the price of bitcoin dipped to a new low not seen since mid-December 2020 as the price hit $20,080 per unit. Bitcoin is 70% down from the $69K all-time high (ATH), but traditionally, bitcoin is known to drop around 80% or more from ATHs recorded in the past.

Will Bitcoin Dive Deeper?

The crypto economy has had a rough couple of weeks as the leading crypto asset, bitcoin (BTC), has slid 35% over the last 14 days. During the past few days, there’s been a lot of capitulation, and on Monday, hundreds of thousands of crypto traders were liquidated for close to $1.30 billion. Two days later, bitcoin dipped to a new low of $20,080 per BTC, and the last time BTC traded at this price was 17 months ago in mid-December 2020.

At current USD values, bitcoin is down 70% from the last time it hit $69K ATH, on November 10, 2021. During the bull runs in 2013 and 2017, bitcoin (BTC) dipped more than 80% lower than its previous price peaks. 

There is a lot of speculation and theories about whether or not BTC’s price will dive deeper. An 80% drawdown from BTC’s ATH in 2021 would be roughly $13,800 per unit. If Ethereum saw a 90% fall from the ATH last year, then the USD value would be around $488 per ether. Some analysts believe BTC could reach $12K per unit and ETH could reach $360 per unit.

The indications look ominous, along with the thousands of crypto employees laid off during the last few weeks, which arguably show this is a bear market. The big question remains whether or not the 80%+ drawdown will take place this cycle and how long the bear run will last.

There are also macroeconomic disasters and concerns over rising inflation, the Central Banks’ hiking rates, and the ongoing war between Ukraine and Russia. While Americans and citizens from other countries received stimulus payments, Bitcoin steadily rose to its ATH. While bitcoin and the crypto markets have never experienced a COVID-19 lockdown economy before, the crypto economy has never been tested under current circumstances either.