Bitcoin drops below $20,000, around 60% down form its year high

Bitcoin price on Saturday dropped below USD 20,000. The world's largest cryptocurrency dropped by 1.5 percent on August 27. It declined by USD 298 from from Friday's close.

ET Now Bureau

Updated Aug 28, 2022, 08:06 IST

Bitcoin

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Bitcoin price on Saturday dropped below USD 20,000. Continuing the declining trend for the second consecutive week, the cryptocurrency dropped nearly 60 percent from its year high, reported Reuters. The world's largest cryptocurrency dropped by 1.5 percent on August 27. It declined by USD 298 from yesterday's close.

Notably, since July this year, Bitcoin dropped below USD 20,00 for the first time. On March 28 this year, Bitcoin reached a year's high of USD 48,234. It declined by 58.7 percent in just five months. In mid-July, Bitcoin was trading at USD 22,000.Notably, Ether also dropped by 2.76 percent. It dipped to USD 1,467.2 after losing USD 41.60 as compared to Friday's close.

Solana and Avalanche suffered great losses as they dropped as much as 6.4 and 6.9 percent respectively. "Friday’s break looks important and negative in the short run but should line up with buying opportunities into early September as cycles remain bullish and project higher prices into November 2022," said Mark Newton, technical strategist at Fundstrat, as quoted by Bloomberg.

Also Read: Bitcoin at three-week low: decoding the crypto crash.

Risk assets dropped after Federal Reserve Chief Jerome Powell issued a warning about the central banking system's efforts in fighting inflation with more increases in interest rates.

"European and Asian central bankers will likely be much more pessimistic than Fed Chair Powell and that has many traders bracing for a weak open on Sunday night," reported Reuters quoting Edward Moya, senior market analyst at OANDA as saying. Stocks tumbled after Powell's warning.

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