The crypto market started to rebound on Monday, June 18. Due to the conflicting international indications following a week of turbulent sessions that drove it to a historic low. Bitcoin price is now up at $20,000. This article covers all the points about Bitcoin’s price recovery and the factors that affect its price.
Many turbulent sessions reversed all profits gained over the past few years. The cryptocurrency market recovered, but they were still below the $0.9 trillion threshold. The stock market continued to be unsteady.
The value of the international cryptocurrency market climbed to $878.60 billion on Monday, up 8.51% from the previous day. This is because of a dramatic comeback in major cryptocurrencies, except Stablecoins.
Bitcoin Price Up at $20,000 (10% Increased In Value)
According to statistics, the total value of bitcoin transactions fell to $78.79 billion falling to 14.86%. Bitcoin surged back above the $20,000 threshold over the weekend after hitting a record low. However, it managed to hold onto that status. On June 20, the price of one bitcoin had increased by as much as 9.98% reaching $20,116.07.
Bitcoin dipped to $17.5K on 18th June, Saturday before rising to $20,000 on Sunday night. According to CoinDesk, Bitcoin increased 10% to $20,571.29 on Sunday night after sliding as low as $17,601.58 on Saturday.
When Bitcoin falls below $20,000 it raised the concerns that it would go far lower. Because financial institutions are hiking interest rates to battle accelerating inflation, investors are selling off their highly volatile assets. A crypto crash is more likely to happen when interest rates are higher. Borrowing money becomes more pricey for individuals and businesses, which lowers the value of stocks.
In May, Bitcoin price rises over $30,000 before falling abruptly in June. This was a result of rising inflation and increasing U.S. interest rates. Investing firms have been selling off riskier assets like technology stocks and cryptocurrency.
Factors That Affect The Bitcoin Price
Individual investors have faced liquidity issues. During the previous 24 hours, 88,415 retail traders have liquidated around $349.25 million in promised collateral. Comparatively, $1 billion was spent before this week.
Due to unexpected liquidity challenges, cryptocurrency lender Babel Finance informed clients on Friday that it was stopping all transactions from all products. Due to severe economic conditions, one of the biggest cryptocurrency lenders, Celsius Network LLC, has prohibited users from withdrawing money for about a week.
Large-scale investments from organizations like Tesla Inc. contributed to the rise in bitcoin prices over the previous two years. During a time when interest rates were low due to the epidemic that enables people who were stranded at home to invest in volatile assets to earn bigger profits.
Rising Interest Rates
Rising interest rates affected the overall economy and several cryptocurrencies. Following significant selling pressure, the stablecoin Terra Luna crashed last month and lost its $1 peg. Its creators liquidated bitcoin holdings to protect TerraUSD’s peg, which depressed the value of bitcoin and other assets.
Bitcoin’s Price Prediction
Last week Bitcoin dropped from its all-time high value to less than $20,000 price that nobody could ever imagine about this booming cryptocurrency. Investors become shocked and started selling off their bitcoins with the fear of losing their wealth completely.
But, today has also surprised many investors that they saw a rise of 10% in the price of Bitcoin. This high volatility shows that Bitcoin is a risky investment. But, it has the potential to regain its value after suffering from such a drastic fall. According to our forecast, Bitcoin’s price will cease declining in August or September of this year after US inflationary pressures begin to go downward.
Bitcoin Price Recovers to $20,000: Will It Regain Its Value?
As consumers continued to flee risky investments amid market volatility, the price of bitcoin fell below $20,000 on Saturday. Significant economic uneasiness is being caused by several factors, including rising inflation, a volatile stock market, rising interest rates, and fears of a disaster.
The volatility is not a new thing. It’s a major factor in why experts advise novice cryptocurrency investors to be cautious when buying digital currencies. Like every other cryptocurrency on the market, Bitcoin has got a boom in its value over time. It makes sense for Bitcoin investors to be interested in how high the currency will eventually climb.