Here’s why Bitcoin slumps to below $19,000 this week!
The biggest cryptocurrency in the world, Bitcoin saw its prices fall massively these past 24 hours, going from trading at a steady price of around $20,000 to $18,700 now at the time of writing (7 September 2022).
This has been Bitcoin’s lowest price since mid-June and is reportedly the lowest daily close for the coin since December of 2020.
— Lark Davis (@TheCryptoLark) September 7, 2022
Why The Fall
There could be a number of reasons and factors as to why Bitcoin saw such a decrease in price recently. One of which is the bearishness that many analysts and pro-investors have towards Bitcoin recently.
Firstly, with the upcoming Ethereum Merge expected to take place this mid-September, many analysts claim that this change in the second biggest cryptocurrency in the world may add pressure to Bitcoin, which currently still uses the proof-of-work consensus.
Independent crypto researcher Kyle McDonalds told CoinDesk in a recent interview “The Ethereum [upgrade] isn’t just about Ethereum.” He continues, “I think after the merge, investors and regulators are going to realise that [bitcoin’s] proof-of-work was never really necessary and we’re slowly going to see a huge crash in the bitcoin price.“
Markets rarely give investors much time to buy the bottom. #Bitcoin has been trading near $20K for the past 12 days. More likely $20k will prove to be a false bottom, giving suckers plenty of time to climb aboard a sinking ship. Better to abandon ship before the bottom drops out.
— Peter Schiff (@PeterSchiff) September 6, 2022
Aside from that, another big reason for Bitcoin’s falling price is due to the possibility of interest rates soon continuing to hike up. Since U.S. Federal Reserve Chair Jerome Powell made comments on the possibility of raising interest rates on August 27th, the crypto market has been rather slow and sluggish, with Bitcoin struggling to stay above $20,000.
Fears are now rising even higher as tomorrow on Wednesday, September 7th, a few members of the Federal Reserve will publicly speak, breaking the news on whether interest rates will hike or lower.