BTC/USD has fallen below $20,000 for the first time since December 2020, according to data from Cointelegraph Markets Pro and TradingView, with press-time lows of $19,066.
Crypto markets faced the brunt of a sell-off that began after shock Consumer Price Index (CPI) results last week, as anxieties heightened following the US Federal Reserve’s remarks on the inflation forecast.
Bitcoin also made a lifetime first by falling below its previous halving cycle’s peak for the first time in its existence, losing the psychologically critical $20,000 level.
Until recently, the largest cryptocurrency has dodged such a shift, leaving it to altcoins, most notably Ether (ETH) earlier this week, which has now fallen below $1,000 for the first price since January 2021.
Commentators ascribed the recent decline to liquidity issues at investment vehicle Three Arrows Capital (often referred to as 3AC), as well as previous issues with FinTech protocol Celsius and the wider macro climate.
Zhu Su, a co-founder of Three Arrows, said the company was “in the process of speaking with relevant parties and totally dedicated to sorting this out,” but did not elaborate on the issues.
The sharp drop below $20,000 occurred over the weekend, when poor order book liquidity exacerbated volatility.
“BTC still requires greater volume & volatility than at present to meet volume levels at prior Bear Market Bottoms at the 200 MA,” prominent trader and analyst Rekt Capital tweeted, as he continued his examination of Bitcoin’s 200-week moving average, which has served as a major lifetime support line.
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