The price of bitcoin inches above USD 20,000 on Sunday after the broader crypto selloff dragged it below the significant psychological threshold on Saturday. The world’s most popular cryptocurrency was priced at $20,129.70 on June 19th afternoon. Bitcoin had plunged as much as 9.7% to less than USD 18,600 by late afternoon on June 18 on the East Coast, as per the cryptocurrency news site CoinDesk. At some points during that time, it was below $18,000.
Despite cryptocurrency climbing up higher, it is still more than 70% below its November 202 all-time high which is nearly $69,000. Many from the industry had believed that it would not fall under $20,000 again.
What does this mean for Bitcoin?
Another widely followed cryptocurrency Ethereum which has been sliding in recent weeks took a similar dip on Saturday to well below $1,000 but soon regained ground around Sunday, adding up to 11 % to $1,101, 81.
Amid wider turbulence, the cryptocurrency industry has seen major turmoil in the financial markets. The past week is being said as the worst week for Wall Street since 2020 (the early days of the coronavirus pandemic).
Riskier assets are being sold by the investors because central banks are raising interest rates to combat quickening inflation. Higher rates can even help in bringing the inflation down but they also raise the chances of recession by increasing the borrowing costs for consumers and businesses and pushing down the prices for stocks, as well as other investments, like cryptocurrencies.