The cryptocurrency industry was on edge on Monday as bitcoin struggled to stay above its key $20,000 resistance level, with investors fearing problems at major crypto players could spark further market shakeout.
Bitcoin, the world’s most popular cryptocurrency, dropped Saturday to a low not seen in a year and a half – $17,592.78 – falling below the important $20,000 marker for the first time since December 2020.
The drastic drop, spurred by high inflation and upcoming rate hikes from the Fed, saw other smaller tokens that usually move in tandem with the coin, such as Ethereum, fall to similar lows – spurring experts to warn of an impending crisis.
Ethereum, the No.2 cryptocurrency, was trading at $1,129, after having dipped well below its own symbolic level of $1,000 over the weekend, to $879.80.
The numbers represent a stark fall from grace for the coins from late last year, when they reached record highs – with Bitcoin hitting $69,000 and Ethereum surpassing $4,900.
The coins have since seen their value fall drastically, as experts warn of an impending ‘domino effect of bankruptcies and liquidations’ as the industry enters a bear market.