Bitcoin tightened to $20,000 for the time being

Bitcoin Bitcoin Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Read this Term rose 3.5% on Tuesday, ending the day around $20,400, but continued pressure on risky assets in Asia brought the price of the first cryptocurrency back below $20,000 on Wednesday morning. Ethereum Ethereum Ethereum is a decentralized, open source, blockchain-based distributed computing platform and operating system. A defining feature of Ethereum is its smart contract functionality, making it extremely popular.Ethereum dates back to 2014 and has since grown in popularity to stand as the second largest cryptocurrency by market cap.As a decentralized cryptocurrency network and software platform, Ethereum represents the most important and widely circulated altcoin. Of note, Ethereum also facilitates Ethereum is a decentralized, open source, blockchain-based distributed computing platform and operating system. A defining feature of Ethereum is its smart contract functionality, making it extremely popular.Ethereum dates back to 2014 and has since grown in popularity to stand as the second largest cryptocurrency by market cap.As a decentralized cryptocurrency network and software platform, Ethereum represents the most important and widely circulated altcoin. Of note, Ethereum also facilitates Read this Term has lost 3% in the past 24 hours, with prices for the leading altcoins ranging from -3.1% (DogeCoin) to -1% (BNB).

Total cryptocurrency market capitalisation, according to CoinMarketCap, declined 2% overnight to $898bn.

The Cryptocurrency Fear and Greed Index was down 1 point to 18 by Wednesday and remains in a state of “extreme fear”.

The dynamics of bitcoin and the Dollar in the coming days could be a prologue to the crypto market behaviour in the coming weeks. On the one hand, it is tough to be bullish on cryptocurrencies in an environment of a sharply strengthening dollar and a sell-off in risk. A rising dollar and an aggressive Fed are significant current obstacles to buying cryptocurrencies.

On the other hand, Bitcoin is historically relatively cheap, attracting the interest of long-term buyers. However, it is still tricky for anything more than the formation of a bottom. It will probably take months before a rally, as we saw in 2020, starts.

BTC could fall another 20-40% by the end of the summer, according to Cane Island Alternative Advisors. The US economy is entering a recessionary phase, and capital will leave risky assets accordingly.

The massive fall in cryptocurrency has led to the flight of “market tourists” and margin traders. Only the most committed enthusiasts remain, according to Glassnode. Meanwhile, HODLers continue to accumulate bitcoins.

According to The Telegraph, electric car maker Tesla suffered a loss of $440 million due to the bitcoin collapse. The company invested $1.5 billion in bitcoin in early 2021.

According to Charles Erith, CEO of investment firm ByteTree, bitcoin and gold are the best insurance against economic shocks during inflation.

The European Central Bank (ECB) has demanded that EU countries comply with uniform standards when drafting national laws to regulate the cryptocurrency industry.

This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich.