Experts believe that if the shares give way, the cryptocurrency could lose that level.
This is a new day in red for Bitcoin and most cryptocurrencies. The best-known of digital currencies is down more than 1.5% this Monday and is struggling to hold above the $20,000 level as it watches the stock market closely.
According to the experts, what Bitcoin does in the coming days will greatly depend on the progress of the actions.
This is highlighted by Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in her market commentary on Monday. “Bitcoin struggles to stay above the $20,000 level. If we see US stocks, especially tech stocks, give up gains this week, we could see Bitcoin fade below the $20,000 mark.”
Bitcoin might fade away
Last Friday, the main digital asset fell to its lowest level in more than three weeks, below $22,000. It remains there for now. It did so after topping 25,000 for the first time since June, following the rally in US stocks.
Likewise, Ethereum is also suffering a major blow at the beginning of this week. The second most important crypto is left at more than 3% and struggles to maintain $1,500 when all eyes in the world of digital currencies are focused on it, before ‘The Merge’, expected to take place in September.
This event, one of the most anticipated, promises to further shake the digital asset market, which has been on a real roller coaster for months.
New winter for Cryptocurrencies
According to Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, the new “cooling off” in cryptocurrencies has come “amid fears that the market is headed for a crypto winter.” As he puts it, “although Bitcoin is still some way off its June lows below $19,000, volatility is rattling the market again.”
Simon Peters, Crypto Markets Analyst at eToro, has also discussed the correlation between digital currencies and equities. “With the close correlation between US equities and cryptocurrencies in recent months, I suspect that what happened with the stock market has filtered into the cryptocurrency markets and is the reason why we are seeing the sale,” he said to CNBC.
Bitcoin Price Analysis
Bitcoin has dropped below $22,000 as a result of recent negative market swings. The downtrend is over, but Bitcoin is struggling to recover its value. While MicroStrategy’s Michael Saylor wants Elon Musk to invest more in Bitcoin.
The latest Bitcoin data, as of August 19, shows that it has seen a positive turnaround. The available data shows that it has added 1.04% in the last 24 hours. The weekly data shows a loss of 12.20%.
The Bitcoin price value is in the range of $21,419.21. The market capitalization value of Bitcoin is estimated at $409,466,632,041. The 24-hour trading volume of this coin is approximately $23,247,288,492.
By Audy Castaneda
