After a week of intense losses, Bitcoin and Ethereum, the two leading cryptocurrencies by market cap, made marginal recoveries on Sunday 19, rising above the $20,000 and $1,000 levels respectively.
On Saturday, June 18, the Bitcoin price fell to a shocking low of $17,772. However, Bitcoin has since recovered and is now trading at a BTC price of about $20,480 on cryptocurrency exchanges like Coinbase, Binance, and CoinMarketCap. The following BTC to USD chart shows the changes in the Bitcoin value in the past 24 hours as of Monday 20.
Ethereum, which had sunk to a low of $898 on Saturday, June 18, has also recovered and is now trading above the $1,100 mark. On Monday, Ethereum was trading at an Ethereum price of about $1,127 on exchanges like Coinbase, Coin Market Cap, and Binance, having spiked by about 13.91% in the past 24 hours. The following chart shows the changes in the Ethereum price over the last 1 day.
The recent cryptocurrency price moves give temporary relief to cryptocurrency investors from the intense downward trajectories over the last week. On Sunday, June 12, the Bitcoin price fell below the $26,000 mark for the first time in a year. This negative milestone caused a massive sell-off in the cryptocurrency market.
On Saturday, the Bitcoin price fell below $20,000, then $19,000, then $18,000, all within a day as shown in the following BTC to USD chart.
Ethereum also fell alongside Bitcoin, dropping to a low of $898 on the same day, marking a drop of more than 46% in just one week.
By dropping below the $20,000 and $1,000 levels, experts argue that Bitcoin and Ethereum have created market conditions that could cause a wave of forced liquidations.
In such an occurrence, large-scale investors in the two cryptocurrencies would be made to close their positions on Bitcoin and Ethereum derivative products, with their prices being too low to generate enough collateral. The events would push the Bitcoin price and Ethereum price down further, causing more liquidations, what is commonly known as a “cascade effect.”
However, by recovering to above the $20,000 and $1,000 levels, Bitcoin and Ethereum have temporarily stopped the intensifying selloff that cryptocurrency analysts had argued could push the Bitcoin price to as low as $13,800 in the ongoing bear market.
The duration and the severity of the cryptocurrency bear market are not clear. The ongoing crypto crash started in early May when the prices of major crypto coins fell alongside that of stocks. The cryptocurrency market has been struggling to recover since then, with every ripple effect of the crash causing more damage.
The latest impact of the crypto crash was felt last week when Celsius, one of the leading cryptocurrency lenders, paused all withdrawals citing “extreme market conditions.” The platform has more than $11 billion in customer assets, and it pays generous yields to customers for their deposits. The company did not give clues on when the customers will be able to access their funds.
In other crypto news, despite the current bear market, Cardano’s ADA has not recorded a huge price drop. On Saturday, the cryptocurrency was trading at a price of about $0.4239. The coin is currently trading at a price of about $0.5012, having risen by about 6.12% in the past 24 hours. This is according to data obtained from cryptocurrency exchanges like Coinbase, Binance, and Coin Market Cap. The following chart shows the changes in the ADA price in the last 7 days.