Bitcoin Price Falls 56% This Year Trades Below $20000 What’s The Next Support Level For The Crypto
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- Cryptocurrency Bitcoin could reach as high as $28,000 by the end of the year, according to an analysis from Deutsche Bank
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Bitcoin, the worlds largest and most popular cryptocurrency, has slumped in 2022 amid a risk-off mood driven by rate hikes and inflation fears. The digital token is down more than 56% in 2022 so far, and is trading far away from its record high level of nearly $69,000 it had hit in November last year. The coin is currently trading below the $20,000 level.
Cryptocurrency prices have suffered this year amid Federal Reserve rate hikes and stubbornly high inflation. After cryptos last two-year hibernation ended in 2020, the sector spiked to around $3 trillion in total assets last November, before plunging to less than $1 trillion recently. The collapse of the Terra/Luna ecosystem and the continued concern about hedge fund Three Arrows Capital Ltd. further rattled investors.
A British Virgin Islands court has ordered the liquidation of Three Arrows Capital, the crypto hedge fund that bet big on everything from Bitcoin to the ill-fated Luna tokens and then succumbed to a $2 trillion wipeout of the digital-asset markets.
Given how closely it has been trading with US stocks, Bitcoin could reach as high as $28,000 by the end of the year, according to an analysis from Deutsche Bank, as reported by Bloomberg.
What’s Behind The Crypto Shakeout
Some of the price action in cryptocurrencies is due to recent failings of companies such as Terra and Celsius.
On Monday, cryptocurrency lending firm Celsius paused all account withdrawals, stoking fears it will soon close.
“What you see now with this selloff, this drawdown, is just a lot of excess in the space that needed to be cut,” said Tyrone Ross, CEO and co-founder of Turnqey Labs, Inc.
The shakeout is also showing what’s “complete nonsense versus what actually has the potential to continue to either be a store of value or an asset that’s worth something,” said Douglas Boneparth, CFP and president of Bone Fide Wealth in New York.
He added that while the drawdown has been brutal, it’s not the first time bitcoin investors have weathered such a storm.
How Much Was 1 Bitcoin Worth In 2016
Bitcoin Price during 2016
2016 saw the Bitcoin network’s hash rate top 1 exahash/second. The hash rate reflects the amount of computing power committed to Bitcoin and is an important measure of the strength of the network.
The price of Bitcoin continued its slow but steady appreciation over the course of the year. After a spike to $750 in June, Bitcoin retraced before closing the year just shy of the all-important $1,000 mark.
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Bitcoin Predictions And The Future Of Crypto
Bitcoin has shown as steady a rise in value over the years as any other cryptocurrency on the market, so its only reasonable for Bitcoin investors to be curious about how high it can ultimately go.
Conservative predictions of Bitcoin say the cryptocurrency will reach $100,000 by 2023, but more bullish crypto enthusiasts say $250,000 isnt far from sight. Big financial institutions have made their own predictions as well, with JPMorgan seeing a long-term high of $146,000 and Bloomberg saying it could hit $400,000 by 2022. A recent study by Deutsche Bank found that about a quarter of Bitcoin investors believe Bitcoin prices will be over $110,000 in five years. Because Bitcoin is so new, price predictions are mostly informed speculations.
What Bitcoin Investors Should Know
Bitcoin is a good place for beginner crypto investors to start, according to the experts weve talked to. But you shouldnt invest in Bitcoin just because others are doing it. More than anything, know what kind of investor you are and buy Bitcoin only in a way that works with your long-term investment strategy.
If youre investing in Bitcoin, expect volatility. Just like you shouldnt let a price drop influence your decision to buy Bitcoin, dont let a sudden price increase alter your long-term investment strategy. Even more importantly, dont start buying more Bitcoin just because the price is rising.
Investors should continue to hold and not worry about the fluctuations. No matter if crypto is going up or down, the best thing you can do is to not look at it. Set it and forget it like you would any traditional long-term investment account. If you let your emotions get in the way, you could sell at the wrong time, or you might make the wrong investment decision.
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What Is Bitcoin Bep2
Bitcoin BEP2 is a token on the Binance Chain. Each BTCB is 100% backed by a BTC reserve, with the price pegged to Bitcoin at a rate of 1 BTCB = 1 BTC. The reserve address for verification is publicly available to anyone at any time.
The Binance cryptocurrency exchange has published the reserve address to demonstrate the transparency of the Bitcoin BEP2 project, as well as to pique the interest of third parties who can freely check the contents of the Bitcoin pool and compare the data with the number of BTCB tokens issued. The project forms part of Binances endeavor to provide affordable trading opportunities for users of its decentralized exchange one of the main services supported by Binance Chain.
Since its launch on April 18, 2019, Binance Chain has been able to achieve good results regarding decentralization and interoperability in a quite short time. Binance Chain Evolution Proposal 2 was launched in June 2019, outlining a set of technical features, rules and management criteria that tokens must meet in order to function properly in the Binance Chain ecosystem.
What Is A Ponzi Scheme
A Ponzi scheme is an investment scam that uses funds from new investors to pay high rewards to the existing ones. It’s named after Charles Ponzi, who conned a number of investors in the 1920s. Unlike a real investment, the fraudster doesn’t actually invest money or do anything to generate revenue.
Let’s say you were an early entrant into a Ponzi scheme, and put in $500 with a promise of gaining a 20% APY. The scammer would use your $500 to pay the interest on other people’s so-called “investments.” He or she would then need to convince more people to put in more money, and use that to pay you. But eventually there wouldn’t be enough new money coming in, the scam would unravel, and your $500 would have disappeared.
The most famous crypto Ponzi scheme is probably OneCoin — a supposed cryptocurrency that didn’t even have a blockchain behind it. The swindlers tricked investors around the world out of over $4 billion. Ruja Ignatova, the main figure behind OneCoin, disappeared and has never been caught.
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What Is The Lightning Network
The Lightning Network is an off-chain, layered payment protocol that operates bidirectional payment channels which allows instantaneous transfer with instant reconciliation. It enables private, high volume and trustless transactions between any two parties. The Lightning Network scales transaction capacity without incurring the costs associated with transactions and interventions on the underlying blockchain.
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How Do You Mine Bitcoin Cash
Mining is the process in which new Bitcoin Cash transactions are confirmed and new blocks are added to the Bitcoin Cash blockchain. Miners use computing power and electricity to solve complex puzzles. By doing so, they gain the ability to produce new blocks of transactions. If one of their blocks is accepted by the network, the miner, or mining pool, earns a block reward in the form of newly-issued Bitcoin Cash.
Mining is highly competitive. As the price of Bitcoin Cash in the marketplace rises, more miners are incentivized to bring more hash rate into the ever-increasing miner competition to produce blocks and have them accepted by the Bitcoin Cash network. More miners make the network more secure by increasing and distributing the hash rate. This prevents a single miner from having control over the network.
Anyone can mine Bitcoin Cash. Mining requires specialized hardware called mining equipment, which can either be bought or rented. Miners also need to run a full node software to build blocks and connect to the rest of the Bitcoin Cash network. Mining can be done independently but miners often pool their hash rate together and share proportionally in the earned block rewards.
How Does Bitcoin Supply Affect Its Price
Since Bitcoins introduction in 2009, its bitcoin supply has been diminishing. Every four years, the cryptocurrency undergoes a halving event during which miner rewards are reduced by half on average. The decline in supply corresponds to increasing demand due to news media coverage and its price volatility. A combination of shrinking supply with a boost in demand has resulted in surging bitcoin prices.
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Bitcoin Had A Rough Start To 2022
Bitcoin ended 2021 up nearly 70%. Thats a fantastic return for any asset class. Nevertheless, a 70% annual return represents something of a comedown for Bitcoin, after gaining more than 300% in the lockdown-ravaged year of 2020.
In 2022, investors are in a risk-off mood, embracing a general flight to safety across the board in most asset classes, said Alex Reffett, co-founder of wealth management firm East Paces Group. Collectively, investors have shown more interest in value based investments and less in speculative stocks and alternative store of value investments.
One reason is the Fed, which has delivered back-to-back rate hikes to combat levels of inflation unseen in the U.S. for forty years. Analysts expect the central bank to continue tightening rates well into 2023.
When the Fed raises interest rates, it has the effect of lessening demands for more growth companies, like tech stocks and speculative risk assets like Bitcoin. Judging how much demand for crypto will remain with all the liquidity drying up is an open question.
We have no historical precedent for how Bitcoin and other cryptos might act if we enter a sustained period when central banks actively drain liquidity, said Interactive Brokers chief strategist Steve Sosnick. Those tend to be difficult times for investors, and riskier assets tend to underperform safer ones.
Bitcoin Price Bounces Back
Bitcoin price bounced off the $19,252 support level and has recovered 21% from its recently formed swing low at $17,605. If this impressive bounce continues, BTC will face the 200-week Simple Moving Average at $22,517.
This hurdle is crucial and will determine the directional bias for the upcoming weeks or months. A successful flip of this hurdle into a support floor will allow Bitcoin price to rally and retest the $23,480 barrier.
The upside for the big crypto is likely to be capped around this level, at least until it is overcome. In a highly bullish case, however, BTC could extend higher and tag the inefficiency formed on the weekly chart at $29,300.
BTC/USD 1-week chart
While things are looking up for Bitcoin price, rejection at the 200-week SMA will indicate buying weakness. In such a case, if BTC produces a weekly candlestick close below $19,252, it will invalidate the bullish thesis and trigger a 19% crash to 15,551.
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High Returns With Little Or No Risk
Bitcoin has generated high returns in the past, but few crypto investors think there’s little or no risk involved. For sure, if you’d invested in Bitcoin five years ago, you’d be up over 700% today — in spite of the recent crash. However, this wasn’t in any way guaranteed. This is still a relatively new and unregulated asset class and there is a lot of uncertainty about what will happen next.
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How Much Was 1 Bitcoin Worth In 2012
Bitcoin Price during 2012
Bitcoin had a relatively flat 2012, trading within a $0.50 range of $5.00 for the first half of the year.
It then reached its yearly peak at the end of December, hitting a high of $13.45.
In November 2012, Bitcoin underwent its first ever halving. This dropped the block reward from 50 BTC to 25 BTC.
2012 also saw the creation of the influential Bitcoin Foundation by Gavin Andresen, Jon Matonis, Patrick Murck, Charlie Shrem, and Peter Vessenes. The Foundation’s goal is to “accelerate the global growth of Bitcoin through standardization, protection, and promotion of the open source protocol”.
WordPress became the first major company to begin accepting Bitcoin for payment in 2012. The online content management system provider did this in response to PayPal’s censorship.
PayPal alone blocks access from over 60 countries, and many credit card companies have similar restrictions. Some are blocked for political reasons, some because of higher fraud rates, and some for other financial reasons. Whatever the reason, we donât think an individual blogger from Haiti, Ethiopia, or Kenya should have diminished access to the blogosphere because of payment issues they canât control. Our goal is to enable people, not block them.â
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Protect Your Digital Wallet
Another way to protect your Bitcoin is to implement good digital security habits, similar to how youd handle large sums of cash by putting them in a safe or FDIC-insured savings account. Experts say small-scale investors with a few hundred dollars in Bitcoin are probably OK keeping it on a mainstream exchange like Coinbase. But if you have a significant amount of Bitcoin, you can incorporate a crypto wallet for additional safekeeping. There are two types of crypto wallets: hot wallets and cold wallets.
Hot wallets are used to store crypto online. They are secure, but more susceptible to hacking than cold storage, which is when you store crypto offline on a piece of hardware. Think of cold storage as kind of like a safe in USB-drive format. Its more secure, but if you forget your password or lose the device, you could lose access to your money forever.
Because crypto held in hot wallets is not FDIC-insured, youll want to make sure that whatever platform or wallet you store your crypto in has robust security measures, including:
- Two-factor authentication
- Storing a portion of holdings in its own cold storage
- Private insurance policies in case of theft or hacking
How Much Is Bitcoin
The current valuation of Bitcoin is constantly moving, all day every day. It is a truly global asset. From a start of under one cent per coin, BTC has risen in price by thousands of percent to the numbers you see above. The prices of all cryptocurrencies are quite volatile, meaning that anyones understanding of how much Bitcoin is will change by the minute. However, there are times when different countries and exchanges show different prices and understanding how much Bitcoin is will be a function of a persons location.
Where Can You Buy Bitcoin ?
Bitcoin is, in many regards, almost synonymous with cryptocurrency, which means that you can buy Bitcoin on virtually every crypto exchange both for fiat money and other cryptocurrencies. Some of the main markets where BTC trading is available are:
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How Much Was 1 Bitcoin Worth In 2011
Bitcoin Price during 2011
Bitcoin’s adoption started to pick up steam in 2011. The Electronic Frontier Foundation accepted Bitcoins as donations for a couple of months in 2011. Due to lack of legal precedent surrounding virtual currencies this arrangement was quickly rescinded, though this was later reversed in 2013 when the EFF began accepting Bitcoin again.
On February 9th, 2011, BTC reached a value of USD$1.00 for the first time ever. A few months later, in June, the price of one Bitcoin hit $10, then $30 on Mt. Gox. This represented a 100x appreciation since the beginning of the year, when the price of Bitcoin hovered around $0.30.
Ethereum Price Takes Control
Ethereum price seems to be much more handsy with the 200-week SMA than Bitcoin. ETH is already grappling with this significant resistance barrier. Interestingly, this level also coincides with the $1,224 resistance barrier.
Hence, a swift move beyond this confluence will indicate that buyers are back in control. In such a case, Ethereum price could trigger a 35% run-up to the $1,730 hurdle.
ETH/USD 1-week chart
However, if Ethereum price fails to conquer the $1,224 barrier, it will indicate that the sellers are still in control. In this situation, ETH could crash 40% to the immediate support floor at $745.
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