Bitcoin Plummets Below $20,000 for First Time Since Late 2020
Its fall was accelerated in recent weeks by the collapse of two major cryptocurrency projects while sowing doubts about the stability of the overall cryptocurrency market.By Erin Griffith and David Yaffe-Bellany NYT
June 18, 2022Updated 10:39 a.m. ET
SAN FRANCISCO — The price of Bitcoin fell below $20,000 for the first time since late 2020 on Saturday, amid a broader market meltdown driven by rising interest rates, inflation and economic uncertainty spurred by the war in Ukraine.
The plunge — it sank below $19,000 at one point Saturday — took place over several months for Bitcoin, the most popular cryptocurrency. Its fall was accelerated in recent weeks by the collapse of two major cryptocurrency projects, Terra-Luna and Celsius, while sowing doubts about the stability of the overall cryptocurrency market. Bitcoin has erased some $900 billion of value since its peak in November.
From March 2020 to November 2021, the price of a single Bitcoin rose twelvefold to $64,000. It passed $20,000 in November 2020, which was a record.
The drastic sell-offs show how intertwined and complex the crypto markets have become in recent years, said R.A. Farrokhnia, a professor at Columbia Business School who specializes in financial technology. As investors flee to less risky assets, “this creates a cascade effect on top of the contagion effect,” he said.
Investing in Bitcoin and other cryptocurrencies surged in the pandemic alongside other risky bets on assets like “meme stocks,” collectibles including sneakers and trading cards, and digital art and media known as nonfungible tokens, or NFTs. The speculation was driven by free-flowing stimulus checks, low interest rates on other investments, a social media frenzy, pandemic boredom and a fear of missing out on the next big thing.
Bitcoin was designed to transform the way people do transactions. The digital currency relies on a decentralized network of computers that log each transaction on a permanent record known as a blockchain. The record cannot be changed or controlled by anyone, including governments.
Bitcoin Price
As of 4:15 a.m Eastern on June 18.
Source: FactSet
By The New York Times
The excitement — and potential profits — generated by Bitcoin’s rise attracted newcomers to learn about, work on and invest in cryptocurrencies. Some investors saw Bitcoin as a safe place to park cash after central banks flooded the economy with money, creating fears of inflation. Bitcoin has a built-in limit to its supply; there will only ever be 21 million of the tokens. Around 19 million have been electronically mined so far.
The run-up also pushed Wall Street and Fortune 500 companies to become more open to something they once dismissed. Goldman Sachs and Morgan Stanley announced plans to offer wealthy customers access to cryptocurrency funds. PayPal and its subsidiary, Venmo, created options for trading and shopping with cryptocurrency.
Square, another payments company, bought $50 million of Bitcoin and changed its name to Block, in part to signify its work with blockchain technology. Tesla bought $1.5 billion of it. The venture capital firm Andreessen Horowitz raised $4.5 billion for a fourth cryptocurrency-focused fund, doubling its previous one.
Excitement hit a peak in April last year when Coinbase, a cryptocurrency exchange, went public at an $85 billion valuation, a coming-out party for the industry. Bitcoin topped $60,000 for the first time.
Last summer, El Salvador announced that it would become the first country to classify Bitcoin as legal tender, alongside the U.S. dollar. The country’s president updated his Twitter profile picture to include laser eyes, a calling card of Bitcoin believers. The value of El Salvador’s $105 million investment in Bitcoin has been slashed in half as the price has fallen.
Senators and mayors around the United States began touting cryptocurrency, as the industry spent heavily on lobbying. Mayor Eric Adams of New York, who was elected in November, said he would take his first three paychecks in Bitcoin. Senators Cynthia Lummis, Republican of Wyoming, and Kirsten Gillibrand, Democrat of New York, proposed legislation that would create a regulatory framework for the industry, giving more authority to the Commodity Futures Trading Commission, an agency that crypto companies have openly courted.
Through the frenzy, celebrities fueled the fear of missing out, flogging their NFTs on talk shows and talking up blockchain projects on social media. This year, the Super Bowl featured four ads for crypto companies, including Matt Damon warning viewers that “fortune favors the brave.”
That swaggering optimism faltered this spring as the stock market plummeted, inflation soared and layoffs hit the tech sector. Investors began losing confidence in their crypto investments, moving money to less risky assets. Several high-profile projects crashed amid withdrawals. TerraForm Labs, which created TerraUSD, a so-called stablecoin, and Celsius, an experimental crypto bank, both collapsed, wiping out billions in value and sending the broader market into a tailspin.
“The circular flow of funds brings questions about whether this entire ecosystem always needs outsiders to come in and sustain it,” Mr. Farrokhnia said.
Even as investing in cryptocurrencies became more mainstream, Bitcoin did not find much success as a means of everyday transaction. Its price swings are volatile, and its upward trajectory has made it more valuable to hold long term. Companies created elaborate ways to make loans or let people use their Bitcoin as collateral in a sector that is known as decentralized finance, or DeFi.
At just over $20,000, around half of all Bitcoin wallets were still sitting on profits, according to an analysis by the Columbia Business School. Mr. Farrokhnia said 61 percent of the addresses had not sold in the last 12 months, showing that many people bought into it to hold it.
Regulators have said cryptocurrencies enable tax evasion, risky behavior and fraud. Last year, China cracked down on cryptocurrency mining and trading, and regulators in Hong Kong, Canada and the United States have warned of regulatory actions. Britain has also banned Binance, the world’s largest cryptocurrency exchange.
Bitcoin’s widespread use by criminals, including the hackers who attacked the Colonial Pipeline last year, has generated further scrutiny. But Bitcoin’s transparency — the ledger is public for anyone to see — has also helped prosecutors track down some criminals and even recover ransom payments.
The recent sell-off has led to cutbacks at companies that were in hyper-growth just a few months ago. Coinbase laid off 18 percent of its employees in June after posting shrinking revenue and losing active users. Other crypto companies, including Gemini, BlockFi and Crypto.com, have also cut jobs.
In past downturns, known in the industry as “crypto winters,” supporters encouraged their peers to invest more while prices were low, or “buy the dip.” But this time, analysts said, the message is not landing.
“You have so much pessimism in the space,” said Ed Moya, a crypto analyst at OANDA. “There’s no confidence right now to buy the dip.”
so maybe this isnt setting up to take down tether YET ( or at all )
maybe some one else im not thinking
a blockfi perhaps
DCA'ing downward through this for those with the stomache ( gamblers )
and ability to have money tied up for a few years are going to do great so as long
as avoiding fringy cult like coins
yeah i know people waiting for rediculos low number to enter all at once
this is a very deliberate , sinister machete attack on crypto
the people consolidating power through this swamp drain are the ones that
bitcoin was made to neutralize
thats my 2 satoshis
maybe some one else im not thinking
a blockfi perhaps
DCA'ing downward through this for those with the stomache ( gamblers )
and ability to have money tied up for a few years are going to do great so as long
as avoiding fringy cult like coins
yeah i know people waiting for rediculos low number to enter all at once
this is a very deliberate , sinister machete attack on crypto
the people consolidating power through this swamp drain are the ones that
bitcoin was made to neutralize
thats my 2 satoshis
Again I don't know much about crypto but this statement broke out for me, True statement? if so you are looking at a massive game of musical chairs...
“The circular flow of funds brings questions about whether this entire ecosystem always needs outsiders to come in and sustain it,” Mr. Farrokhnia said.
“The circular flow of funds brings questions about whether this entire ecosystem always needs outsiders to come in and sustain it,” Mr. Farrokhnia said.
Riaders said 90 ( or did he say 99 ) percent of the coins will be dead
when the smoke clears
so anyone want to throw some coins out there to discuss that they think will
come out of this leveledd up ?
or ask about ..
trying to think of some i like that i havent mentioned
there arnt many
btc - algo is your ying and your yang
thats your decentralized store of value .. and " decentralized lol" Layer 1
digital identity projects tied to the iso20022 perhaps
coins that have zero track record in crypto and you hear about for the firdst time
when researching iso20022 intrigue me .. for exampke RESERVE ( RSV and RSR )
one is the stablecoin and the other is governance token , which i never buy into but still ..
decentralized naming systems such as handshake HNS ( havent ever nought just follkow )
digital ID HID in iso20022 im foloowing closely
very suspicios how they arrive out of the blue sky into the iso20022
poly which i though would be handicapped once ethereum solves / implements its sharding
is now in the iso2022 and i dont know why
nothing sexy about the above but thats where i belive the safest money is on the bounce back
not in sexy cult projects
when the smoke clears
so anyone want to throw some coins out there to discuss that they think will
come out of this leveledd up ?
or ask about ..
trying to think of some i like that i havent mentioned
there arnt many
btc - algo is your ying and your yang
thats your decentralized store of value .. and " decentralized lol" Layer 1
digital identity projects tied to the iso20022 perhaps
coins that have zero track record in crypto and you hear about for the firdst time
when researching iso20022 intrigue me .. for exampke RESERVE ( RSV and RSR )
one is the stablecoin and the other is governance token , which i never buy into but still ..
decentralized naming systems such as handshake HNS ( havent ever nought just follkow )
digital ID HID in iso20022 im foloowing closely
very suspicios how they arrive out of the blue sky into the iso20022
poly which i though would be handicapped once ethereum solves / implements its sharding
is now in the iso2022 and i dont know why
nothing sexy about the above but thats where i belive the safest money is on the bounce back
not in sexy cult projects
well that would be nice of course
for years the thinking was gold being a 10 T MCap would get eaten by btc.
HOWEVER
Many of the projects like CELSIUS that they just destroyed and LUNA before it were new jacks
pumped up about diving into crypto .. followed what they were told to be complaint
uploaded drivers license. passport, linked to bank account , proof of residence
all to just to destroy ther investment bty funneling tehir moneyt into a centralized project and liquidating it
very very sinister
all of these new jacks not coming
but that woint stop , just slow down people , more will showe up just to get rekt
same way people still get married with divorce rate at 50 - 50
but if your just a BTC HODLR you dont need anything to happoen
all you need is time and the security of the bitcoin blockcahin
THATS IT NOTHING ELSE
for example if you were fleeing Ukraine .. would you rather flee with Gold or a NANO ledger
even Russians that fled .. again would you prefer to flee gold or with BTC ?
BTC so much better than gold its not even funny , so it was expected that gold money would convert to btc
institutions have not been buying btc at all yet , the etf was a step in the right direction ... the spot etf coming will
onboard some .. but the upside is so massive of institional money entering that its too big a risk to not have a bet on
btc for if or when that happens
in my opinion
therer are some young folf tthat have theior paychecks funneled intto strike app and buy crypto with their savings
thats actuaklkly common amongst 20-30 somethings, single working living at mom
theres still a ton of money in diffferenbt varieties that wilkl continue to enter the space
stepping , tripping over the bodies that luna and cel left dead on the street
so imo retail investor new money inflow will continue to increase and never stop
and what level of institional investments .. wether soverign money funds .. or instituins or whatver remains to be seen
but i think theres pklenty of proof that the infrasdtructures being put in place indicate its only a matter
of time
im not a trader .. even when i see a move i just pass ..
i dont like the actual transaction process of buying and aselling
i dont try and pick bottoms or tops
i try and find an angle .. and then iim patient and buy
so i bought algo atr .45, .40.
its .30 , a terrible trade if i was a trader ..
its just that i was in the prcess of pruning my accounts and i didnt care if i lost a little short term
like michael corleon , today i settle all family business .. move the pieces around
i did also buy algo at .30 .. and will buy lower
with zero regret or guilt about the ones i bought at .45
hope that explains MY way
i have colleagues that are wayyyy more surgical , however sometimes they dont end up with the position they want
trying to nail it .. and i end up with the position they wanted , albeit at a cost that they thought i c ouldve done better with
bottom line
PICK THE WINNERS
so for exampke
HID which is in the iso20222 i blab about
been waqtching it as its suspicious to me ..
watched it at .70
its .01
the total supply is 50 Million
it dosnt list what the circulating supply is ..
but once fully diluted its current MC is 500k
i mean im used to weeding through coins with MCAP around 100M or whatevr if im playing the low marketcap game
500k MCAP in crypto is a joke NEVERMIND its in the iso20022
having said that
i havent bought it, and info on it is illusive
but something is drawing me to it so i will stay follwoing it
HID which is in the iso20222 i blab about
been waqtching it as its suspicious to me ..
watched it at .70
its .01
the total supply is 50 Million
it dosnt list what the circulating supply is ..
but once fully diluted its current MC is 500k
i mean im used to weeding through coins with MCAP around 100M or whatevr if im playing the low marketcap game
500k MCAP in crypto is a joke NEVERMIND its in the iso20022
having said that
i havent bought it, and info on it is illusive
but something is drawing me to it so i will stay follwoing it
so much of all of it i dont understand
the marching order they state on their website seems like an obvious mis-direcvtion
supposedly they are all for end user privacy blah blah blah
meanwhile its a digital ID
had colleagues tell me a year ago the projects are goiung to be saying one thing
funneling people in and doing the opposite
and with what i already said about the suspicious way they end up in an important alliance
well it just seems like theres more than meets the eye to it
having sdaid that i havent and likely wont buy it
my reso9urces only cover so much ground
99% Probably
Survive?
Dot Eth have solid support and hold. Not much shady stuff with them.
Link Ltc monero (gets lot hate but doubt it crumbles) ADA probably all come back around. ADA has a cult following fwiw
Mana about the only one that has real life use you can visibly see. Sand probably. The games they occupy are like Minecraft on steroids. Has a decent community and in mana big corporations were getting involved advertising etc.. If you think the virtual world has a niche then they may be worth a look. Mana has virtual casinos you can literally gamble in. Believe grayscale or black rock are invested pretty big in mana. I got in on the 18-20 cent range. Got out at 90 cents. Got back in at $1 and back out at $1.50ish.
I’m watching Dot to see if it can get to $3. Not sure it will as I believe $5 probably has big support. Maybe $4ish. I went big into Dot $7-10 range and around $14 then casually gobbled up more up to $20. Staking reward was good. Got out mid $40’s high 30’s if memory is correct. It was never a huge 2-3x in a week coin. But never took bloodbath either.
Eth
Dot
ALGO
Sand
Mana
Ltc
Link
Xmr
Imo all survive. Just wouldn’t expect 20x type ROI unless they really bottom out. Your safer bets. Some big money folks will pump the huge 100x coins then dump but they are impossible to pinpoint imo.
Nothing easy or safe pinpoint as it’s all very volatile. I can’t predict anything with certainty but if me Dot is the one I’d look at for a 10x ROI in few more years. Believe it can get up to 70-$80 next big run. I was on the BTC to $19k 8-10 weeks ago. Personally though 18k was a huge support. But hell it may crash to 2k who the hell knows.
Just my opinions. Raiders knows this stuff pretty well. Maybe keep an eye on his opinions. GL
i posted that , not because i think its some monumental deal, maybe it ends being something great ..
its too show how AlgoRand specifically moves
i was saying a=while ago its the illuminati coin .,. super connected etc ..
as i posted ear;ier .. huge branding all over TD Garden ,, i cant get the photos uploaded here ..
a few weeks later the above press release comes out ..
and the point .. Wyc the celtics owner , a NOBLE aliumni .. Drone rACING lEAGUE FOUNDER ,,
a noble alium
and thats just a blockchain deal .. same crap going down between algo execs and the people behind all
'the standards for web 3 that are being set as we speak
super solid post .. im not a big metaverse guy anymore .. im way more a believer in AUGMENTED realirty than virtual reality
dosnt m,ean mana wasnt / isnt a badass play
i loved dot, that trade you made / how you played it was PRO ..
i hated the way DOT behaved price action wise once it actually took off
funny i have a col;umn on my todo called 'intrigued/research'
thats my top research to do list
polkadot 2.00
next think i i knew it was 16 then 40
seems like so much selling pressure on that rise , maybe thats out the way and this time will be differebt
i love what they builot ecosystem wise .. polkastarter was a bad ass dex/launchpad that launced a buynch of meta projects off it theres a few other projects within their eco that I LOVE that are enabled becauyse of DOT
LTC might as well be a stablecpoin with upsided lol
they have totally become outdated havent made any improvements at all
THEN ethereum goes POS
maybe just maybe theres a chance people look fopr a POW safe haven when some POS panic fud hits
either way ive always admired LTC
HAVE a collegue that has been killing it mining Monero waitying for him to give me the play book
on how hes doing ity he is cleaning up
GREAT POST
wrong press release that was january .. although
play to earn is big
and i replied to the other poster about MANA he listed .. and said i wasnt a big netaverse guy
however this press release hits the nail on the head about interoperability .. takijng an object from one platform ,
even like from your xbox and trading nit within the metaverse
sounds insignificvant .. but for th epropple in the world , which is so many , its MASSIVE
