Bitcoin falls below $ 20,000, Ethereum tests $ 1,000

Bitcoin has fallen to a significant new low in today’s bear market.

On Saturday morning, Bitcoin fell below $ 20,000, according to data from CoinMarketCap—A milestone seen as a crucial level of support for the best cryptocurrency by market value. At the time of printing, Bitcoin is trading at around $ 1[ads1]9,460, down over 6% on the day.

Although BTC breaking $ 20,000 is a largely symbolic barrier, experts believe a fall below this level can trigger a wave of “forced liquidations”, where large-scale crypto-investors will be forced to close positions on BTC derivative products because they now have insufficient collateral. Such events will probably only drive down the price of Bitcoin further, and trigger further liquidations.

At the time of publication, Ethereum, remains above the $ 1000 support level, albeit a fraction; it is currently trading at around $ 1,020.

The total market value of all cryptocurrencies is currently around $ 853 billion, a decrease of over 5% in the last 24 hours.

According to Arthur HayesFormer CEOs of BitMEX, $ 20,000 and $ 1,000 represent price levels for BTC and ETH, respectively, which, if broken, will trigger “massive sales pressure.”

The crypto markets plunged early last month when large coins fell in accordance with the stock market. Within a week, Terra’s stable coins UST and native token LUNA both implodedand erases around $ 40 billion in value.

Since then, cryptocurrencies have been on a steady pace with technology stocks, a decline accelerated by investors pulls millions of dollars out of decentralized financeamid fears of a worsening bear market.

On Sunday, crypto lender Celsius stopped all customer withdrawalsciting concerns that the company would not have enough funds to cover a race on the platform originates from the depegging of cryptocurrency stETH from ETH.

As the pervasive effects of each new downturn in the crypto market continue to play out, it is still unclear when BTC, ETH and the broader crypto market will hit the familiar bottom.

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