The Bitcoin price has fallen below US$20,000 for the first time since December 2020. The drop comes amid a broad sell-off in global markets with US stock indexes also tumbling. Bitcoin is now down nearly 30% from its record high of nearly $29,000 hit just two weeks ago. Bitcoin price falls below $20,000 for the first time since 2020, Caution Advised.
The sharp decline in the Bitcoin price is being attributed to a number of factors including concerns about tighter regulation and a possible crackdown on cryptocurrency exchanges in China. There are also reports that some major investors have been selling off their Bitcoin holdings.
Despite the recent sell-off, the Bitcoin price is still up more than 50% since the start of 2021. And many analysts believe that the long-term outlook for cryptocurrency remains bullish.
The Bitcoin price has fallen below $20,000 for the first time since December 2020 as market confidence in the leading cryptocurrency appears to have been shaken.
The BTC price fell as low as $19,783 on the Bitstamp exchange on January 8 2021 before rebounding slightly. The last time the BTC price was this low was on December 1, 2020.
Since hitting an all-time high of nearly $65,000 in mid-April 2021 the BTC price has been in a steady decline losing nearly 70% of its value. The sell-off gathered pace in recent weeks after Tesla announced it had sold 10% of its holdings and would no longer accept Bitcoin as payment for its electric vehicles.
The fall in the BTC price has also coincided with a sharp decline in the wider cryptocurrency market. Ethereum the second-largest cryptocurrency by market capitalization fell below $1,000 on January 8 for the first time since early December 2020.
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