The world’s largest cryptocurrency is trying to regain its key resistance level of $20,000, lost over the weekend, which became “black days” for the crypto industry. Bitcoin lost 9% on Saturday, recording a 35% drop over the week, while Ethereum rose 13% after losing 20% over the week.

There has already been talk of a so-called “crypto winter” comparable to the 2-year period of 2017/2018, due to endogenous and exogenous reasons in the world of virtual currencies.

The crypto sector has gone from the peak of its capitalization — more than $3 trillion to less than $1 trillion in just a few months. For comparison: in the period from December 2017 to June 2018, the sector decreased from $850 million to $250 million, that is, by more than 70%.

In addition to the bear market that affects all risky assets, the collapse of TerraUST stablecoin and the difficulties faced by major crypto platforms such as Coinbase (NASDAQ:COIN) and Celsius (NASDAQ:CELH) have increased skepticism about the crypto space 2 years after November 2021. when BTC rose to $69,000.

Bitcoin fell by 15% last Saturday when its support at $20,000 collapsed, ending the day at $18,955.

Analysts conclude that those who manage to find business models that can generate revenue and at the same time attract new users will “ride the next wave” of opportunities in the digital asset space. However, there will be many casualties along the way, as has already been observed in this decade of digital asset evolution.

will bitcoin fall to $10,000?

Last weekend, the bitcoin exchange rate fell to a new low since December 2020 at $17.6 thousand. On Sunday, the price of the cryptocurrency returned to growth and rose above $ 20 thousand, on Monday it again exceeded $ 21 thousand. As of June 22, the asset is trading at $21.181, over the past week it has fallen by 23%.

The panic in the markets was caused by the latest inflation report in the United States for May, which was released on June 10. In anticipation of an aggressive rate hike by the US Federal Reserve, investors sold shares on the stock market, and after them, crypto investors began to discount tokens. Since the cryptocurrency market remains low-liquid and is constantly being manipulated, the drop in percentage terms is several times higher than the dynamics of stock indices.

On Wednesday (June 15), before the FOMC meeting, sellers tested the level of $20.1 thousand. The results of the Fed meeting were expected by traders in all markets, so nervousness was observed in all risky assets.

Following the results of the two-day meeting, the US Central Bank decided to raise the rate by 75 bps, to 1.75%. After the announcement of the decision and the speech of J. Powell’s bitcoin exchange rate recovered to $22.9 thousand, following the indices. The rebound was weak for such an event. On Thursday, buyers lost all profits amid falling stock indexes. The S&P500 index fell by 3%, the Nasdaq — by 4%.

J. Powell reduced uncertainty regarding monetary policy, while the probability of a 75 bps rate hike in July is estimated at 86.2%. Perhaps investors are afraid of a slowdown in the US economy from a sharp increase in rates (fraught with recession).

On Friday (June 17), US stock indexes closed in a slight plus, while they closed the week in a negative area. On the last trading day, all indices, including cryptocurrencies, showed little volatility. I was surprised by the low activity of traders, since Monday is a day off in the US and before the long weekend, volatility increases more often than decreases.