Bitcoin continues to fall to its lowest price since December 2020

by | Jul 3, 2022 | Bitcoin, Market, Market News, News | 0 comments

Yesterday, 15th June 2022, we saw Bitcoin going to another 18-month low level which is also affecting many small tokens negatively. The world’s biggest digital currency fell down to $20,289 which is around 7.8% and its lowest price since December 2020. It has lost more than its half value this year and around 28% since last Friday. Looking at its highest price, observed in November last year, it has dropped around 70%. This percentage is enough to make any of its investors go crazy. In earlier bear markets, Bitcoin has never fallen this much low. The distinction this time is that Bitcoin has much less distance to cover to cross that level.

The reasons behind this tragic price drop are very much clear for most of the people. According to the experts, this is because of the worldwide climate. It’s not only about the crypto world that things are not looking great, it’s happening everywhere else. The worldwide financial climate is turning out to be very difficult to explore for financial backers that are into a wide range of markets, so it is nothing unexpected that bitcoin is likewise confronting the pressure.

Downturn looms, inflation is taking off, we can see the huge rises in interest rates and living expenses are also going up. Stock exchanges are also shaking as the US Standard and Poor’s 500 now in a bear market, 20% down from its recent high.

Subsequently, even the huge financial investors are worried  about their money. What’s more, numerous ordinary financial investors (not rich business owners or corporations) have literally nothing left to invest into anything. For some of us, investing in something as unstable and flighty as crypto currency feels like a stupidity especially in the circumstances like now.

Other than the overall economic crisis, another reason behind the price fall of bitcoin is that last month we saw two much lower-profile however significant coins crashing down and this broke down a ton of trust in the market generally. Subsequently, individuals are progressively choosing to sell up their assets. The more individuals sell, the less Bitcoin is worth, since that is the only way it works – its price is fixed to its desirability. This has a thump on the impact of more individuals selling since they can see the price going down and in this way, this cycle continues.

What can we do?

Basically  to settle down the whole situation, individuals who actually have Bitcoin would have to hold on to it because you never face loss until you sell the assets. In this hard time, patience is the only key to success. Some of the Crypto experts also stated that it’s an extraordinary time to purchase, since it’s cheap right now. So, it’s up to you, if you want to invest more or just hold on to the existing assets to see what happens next.