Bitcoin melts and drops below $20K; Ethereum misses the $1,000 threshold

The market again recorded a day of widespread lows this Saturday (18) and the two main cryptocurrencies lost historic levels. Bitcoin (BTC) slides below $20,000 for the first time since December 2020. The token is down 8% and is trading at $19,423. In the last seven days, the top cryptocurrency by market capitalization has already lost 32%.

During the night, bitcoin even recorded even higher losses, being sold at around US$ 18,900, according to data from the CoinMarketCap portal. In Brazil, BTC points to a drop of 6.6%, at R$100,017, still slightly above the level of R$100,000, according to the Bitcoin Portal Index (IPB).

Ethereum (ETH) also misses the $1,000 threshold after a 9.2% pullback. The asset now registers a value of US$ 986. In the week, the devaluation of ETH reaches 36%.

Altcoins are also hit by the negative wave. BNB loses 6.6%, Cardano (ADA) drops 4.9% and Solana (SOL) drops 5.1%. Other important losses are AAVE (11.1%), RUNE (10.4%) and LINK (9.4%). On the other hand, TFUEL rises 9.9% and BCH points to an increase of 5.8%.

Memecoins are not spared the negative day either. Dogecoin (DOGE), the favorite of Elon Musk – who is being sued for allegedly creating a pyramid with the asset -, shows losses of 5.5%, while Shiba Inu (SHIB) is down 3.9%.

Loss of historic level

In addition to the low, the market is concerned that now, for the first time since bitcoin began circulating in 2009, its price has dropped below the all-time high of the previous halving. This is something unprecedented, as shown by a report from the Bitcoin Portal.

Halving is an event programmed into the Bitcoin blockchain that, every four years, cuts the reward generated per mined block in half, decreasing the issuance of new coins on the market.

Bitcoin’s last halving took place in May 2020, and the all-time high of the pre-halving cycle was $19,783, recorded on December 17, 2017, according to data from the CoinDesk Bitcoin Price Index – an indicator that was broken this Saturday. .

This quote marked the apex of that bullish cycle and, after the market correction in the following years, the price rose again to a new record at the end of 2020 — just months after the May halving of that year.

Rock bottom

The market capitalization of all cryptocurrencies is currently in the range of $835 billion, down 7% in the last 24 hours. That’s a far cry from the record set 221 days ago, when the market hit $3 trillion. At the time, the price of BTC was $66,362, while ETH was at $4,782.

Investors and analysts continue to wonder what the rock bottom will be for cryptocurrencies. According to Sam Callahan of Swan Bitcoin, the top coin could plunge to as low as $13,800, which would represent an 80% reduction from its all-time high. It would be a drop in proportion to the one recorded in December 2018, when the token dropped to close to $3,000.

The successive drops in price have made bitcoin not only dropped out of the list of the ten most valuable assets in the world, but also threatened to leave the top 20. Currently, the BTC market cap is US$ 393 billion and this places it in 17th position in the ranking prepared by Companies Market Cap.

About Abhishek Pratap

Food maven. Unapologetic travel fanatic. MCU's fan. Infuriatingly humble creator. Award-winning pop culture ninja.

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