Even though Bitcoin BTCUSD –0.04 percent had fallen by more than 20 percent during the previous seven days, it remained around the psychologically critical level of $20,000 on Monday.
According to CoinDesk, the value of the digital currency rose by 6% in the last 24 hours to $20,7688. Several other cryptocurrencies, including Ethereum, Solana, and Avalanche, also gained ground on the day.
Because of the first-rate increase since 1994, the bitcoin market is likely to see some turbulence. While some experts believe that this is only the beginning of the new crypto winter, others fear that the latest meltdown might be the beginning of the end of the crypto business.
A 15 percent rebound followed Saturday’s 15 percent drop in Bitcoin on Sunday. For the first time since 2020, the currency fell below $20,000 last week. In November, it hit a high of over $70,000.
Traders must test the $20,000 level as a safety net. Some firms, like MicroStrategy, may suffer margin calls on their loans if they borrowed money to invest in Bitcoin at this moment.
Deposits of over $11 billion in cryptocurrencies were blocked by Celsius Network last week as the price of cryptocurrencies plunged. On Friday, Babel Finance, another lender, joined the fray. The founders of crypto hedge fund Three Arrows Capital say the company has suffered substantial losses and is contemplating selling assets or rescuing itself.
