The price of the world’s most famous cryptocurrency, bitcoin, fell this Saturday below the level it reached in the 2017 bull cycle ($20,000 each), only to recover slightly on Sunday and return above that point.
Around 8:00 p.m. yesterday, June 20, Central Mexico time, bitcoin was trading at $20,115.33, which implies a loss of 70.21% compared to the maximum it reached in November 2021, when it was trading at 67,527.90 Dollars.
With a market value of $383.88 billion, the cryptocurrency has lost $886.12 billion since its peak of $1.27 trillion (in November 2021).
On Saturday it reached 17,630.50 dollars; since November 2020 it has not touched such low levels. On Sunday it had an intraday advance of 5.84 percent.
The 20,000 dollars per unit represents a “critical” point for bitcoin, according to analysts, as it is the maximum that it almost reached in its last bullish cycle (19,891 dollars) in 2017.
“Throughout its history, bitcoin has never traded below the peaks of previous cycles, and a potential visit below this level ($20,000) could lead to capitulation by holders and a reduction in leverage,” they warned. last week Vetle Lund and Jaran Mellerud in an Arcane Research note.
After the 2017 peak, the crypto plunged 84.29% to $3,216.10 in 2020. It took three years to return to $20,000 levels, from where it rebounded to its December 2021 highs.
“If the history of 2017 were to repeat itself, we are about two thirds of the way down (the way down), that is, another 15% would still need to collapse,” said Cipactli Jiménez, a private investor.
So far in June, bitcoin has fallen 36.73%, losing $11,678.07. At the end of May, the cryptocurrency was trading above $31,000.
June has been a tough month for bitcoin, and it is not only inflation data and increases in interest rates by central banks that have generated fear among investors. Several cryptocurrency exchange houses have also issued announcements that have only increased uncertainty.
On Friday, Babel Finance became the second crypto-asset lender to freeze bitcoin withdrawal by its customers, after Celsisus Network did the same on Monday.
Total cryptocurrency market capitalization hit a low of $790,262.4 million on Saturday, the first time in the past 18 months that it has dipped below $800 billion.
On Sunday night, Mexico City time, the market value of all digital currencies was 884,221.1 million dollars.