Bitcoin fell to as low as US$ 17,749, equivalent to Rp. 270,512,509 and Ether at US$ 897, The world's two most popular cryptocurrencies are down more than 35% in the past week, as they both breached symbolic price caps.
The carnage in the crypto market was partly due to pressure from macroeconomics, including rising inflation and a series of Fed rate hikes. Bitcoin peaked at $68,789.63 in November. Ether peaked at $4,891.70 in the same month.
Bitcoin last traded this low around December 2020.
The digital currency sector has taken a hit this week after cryptocurrency lender Celsius froze withdrawals and transfers between accounts. While crypto companies are starting to lay off employees, there are also reports that cryptocurrency hedge funds are having problems.
The development coincided with a decline in equities, as US stocks suffered their biggest weekly percentage decline in two years on fears of rising interest rates and possible recessionary growth.
The speed and depth of b=Bitcoin's accelerated losses along with the stock's rout could challenge support for cryptocurrencies from various groups of investors. Meanwhile, some institutions are buying Bitcoin in the hope that it will offset the decline in stocks and bonds.
"That doesn't show that it's an uncorrelated asset yet," said Michael Purves, founder and CEO of Tallbacken Capital.
Many estimates predict this decline to occur because Bitcoin's resilience has not been tested. "I think Bitcoin will get to $15,000 per coin because there's a lot of negative sentiment," explains Michael Purves.
Bitcoin, the largest cryptocurrency, had fallen around 13.7% on Saturday afternoon to a low of $17,593, its weakest level since December 2020, before briefly crawling to $18,556, still down 9.22% from its previous close.
This means that Bitcoin has lost 60% of its value this year, while Ether, which is built on the Ethereum blockchain, is down 74%. In 2021, Bitcoin hit a record high of over US$68,000/coin.
Breaking through $20,000 shows that confidence has collapsed for the crypto industry and that the public is seeing the latest pressure," Edward Moya, senior market analyst at OANDA.
Moya says that even the loudest crypto cheerleaders from major rallies are now silent. They are still optimistic over the long term, but they stopped short of saying this is the time to buy even though prices are falling steadily.
Jeffrey Gundlach, CEO of DoubleLine Capital, said Wednesday that he wouldn't be surprised if Bitcoin dropped to $10,000 per coin.
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