On June 18, 2022, Bitcoin traded price below $20,000 at just $19,232.3.
This is the lowest Bitcoin trading price reached for the first time since 2020. It was a tumultuous weekend, and bitcoin owners had a particularly hard time. Things have only improved since the start of the week, bouncing back from the decline with a 10% rise to a price above $20,000. Although the trading price is far from the previous one, the upward trend gives everyone hope.
Why Is Bitcoin Traded Price Falling?
There are many factors that influence bitcoin traded price’s rise and fall, such as the cascading effects of some cryptocurrency-specific events, or thought-provoking, broader macroeconomic issues.
This week, certain factors may also influence the extent of bitcoin traded price’s rise and fall.
Singapore-based hedge fund Three Arrows Capital is known around the world for having a net worth of $18 billion and a large stake in highly leveraged crypto assets.
Three Arrows Capital has been hit harder than ever in recent years due to the instability of the cryptocurrency market and the impact of hacking attacks. Rumors of bankruptcy have not ceased. In the face of this rumor, although Zhu Su, the Dubai-based investor behind Three Arrows, claims to have been actively working on this issue. Although everyone was skeptical about this statement.
The collapse of Terra, a stable currency, and the failure of Axie Infinity, a “play to earn” game, added to the woes of the cryptocurrency market.
Cryptocurrency lending platform Celsius Network abruptly halted withdrawals in the face of bitcoin traded price’s decline, triggering a massive sell-off by bitcoin owners.
From a macro point of view, due to the recent rise in interest rates, inflation and the start of the war in Ukraine have a considerable impact on the Bitcoin traded price.
▼BTC/USD – Daily Chart
Over-The-Counter Volume Surges Amid Bitcoin Storm
While the cryptocurrency market has been hit hard in the last week, the over-the-counter (OTC) counter has generated a large number of trade orders at the same time. Why is this? As far as we can tell, DRW firm Cumberland has long offered a number of suggestions over the past week on what bitcoin owners can do to prevent major problems from occurring. In the face of this storm, the vast majority of smaller bitcoin owners have chosen to listen to them and come to the over-the-counter (OTC) counter.
We don’t know what the future holds for the cryptocurrency market. There are not a few people and companies that have been hit by the storm last week. Those without strength have become a thing of the past, and those with real strength are often silent.