Bitcoin continued to fall in price against the backdrop of a decline in the traditional stock market and accelerating inflation, breaking the low of December 2020, pulling ether and other cryptocurrencies with it.
On the morning of June 18, the first cryptocurrency collapsed to $19,000. Thus, BTC for the first time since December 15, 2020 reached a level below $20,000. The cost of bitcoin began to fall from June 6, from $31,000, and reached $19,698 on June 19.
The total capitalization of the digital asset market fell to $376 billion with daily trading volumes of $40.34 billion.
Ethereum followed Bitcoin, falling to $995 and then rising to $1,048.
The current crypto winter differs from 2018 in that cryptocurrency is falling along with tech stocks as the overall economy looks shaky, inflation is skyrocketing and a full-blown recession looks imminent.
Kraken CMO Dan Held said on Twitter on June 18 that Bitcoin has chosen the most negative scenario:
“I have seen the worst moments in the history of Bitcoin. We are on the path to maximum pain. Those who survive will receive the title of hodler (from the meme-word hodler – an investor holding cryptocurrencies at all costs. – Bits.media).”
Economist Peter Schiff, at the beginning of the Bitcoin decline cycle , announced a possible price of $3,000 for Bitcoin :
“If BTC could fall 70%, from $69,000 to less than $21,000, it could just as easily fall another 70%, to $6,000. Given the excessive leverage in the crypto industry, imagine the forced selling that will begin. In this case, $3,000 is a more likely price target.”
At the same time, Arthur Hayes, the founder and former CEO of the BitMEX crypto exchange , said that if Bitcoin falls below $20,000 and Ethereum falls below $1,000, then a huge sell-off of cryptocurrencies will begin. The expert builds his theory on the study of data on options from the Deribit exchange, believing that a breakthrough of these levels of BTC and ETH will lead to strong pressure from sellers and the arrival of a long crypto winter.