Bitcoin Plunges Below $25K, Lowest Level Since December 2020

A weak macroeconomic environment and systemic risk from within the crypto space have caused nearly 12 successive weeks of losses for the asset.

AccessTimeIconJun 13, 2022 at 6:30 a.m. UTC
Updated May 11, 2023 at 6:41 p.m. UTC
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Bitcoin (BTC) plummeted below $25,000 Monday amid weakness in the macroeconomic environment and systemic risk from within the crypto market, data shows.

The asset has slid for nearly 12 straight weeks, falling from nearly $49,000 in March 2022 to under $25,000. It showed some signs of bottoming out in mid-May, but worrying U.S. inflation data released last week did little to cushion falling sentiment.

The consumer price index (CPI), the most widely tracked benchmark for inflation, rose 8.6% on a year-over-year basis in May, topping expectations that it would decline to 8.2% from April's 8.3%, as reported.

Such data contributed to a fall in Asian markets on Monday. Hong Kong’s Hang Seng fell nearly 3.5%, Japan’s Nikkei 225 fell 3.01%, while India’s Sensex dropped 2.44%. Futures of U.S. technology-heavy index Nasdaq opened 2% lower, while S&P500 fell 1.65%.

According to price charts, bitcoin had strong support at the $29,000 mark, but the fall below that level now means that the cryptocurrency could drop to its 2017 high of nearly $20,000.

Readings on the Relative Strength Index (RSI) – a tool used by traders to calculate the magnitude of an asset’s price move – dropped under 30, suggesting a reversal could be on the way as short-term buyers react to technical data.

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Elsewhere, crypto lender Celsius paused withdrawals citing “extreme market conditions,” fueling Crypto Twitter concerns that the company may not have enough liquidity to pay out its depositors.

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Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.


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