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Bitcoin price drops below $22,000 as the crypto market plunges

Bitcoin price drops below $22,000 as the crypto market plunges

Bitcoin price fell below $22,000 on Friday, according to a CNBC report citing data from CoinDesk. The digital currency had fallen as low $21,500 earlier in the day before bouncing back slightly.

Before this recent price drop, Bitcoin had been enjoying a gradual recovery to its former peak. It had been trading at $22,738, a remarkably high value given the challenges that it suffered in the first half of 2022.

In general, August had been a good month for Bitcoin until now. It had been trading at above $23,500 for most of the month and even rose to $25K on August 15.

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This latest price drop is said to be tied to US equities and sell offs. While trying to explain the cause, Simon Peters, crypto market analyst at eToro, said:

“US equity markets have pulled back since Wednesday’s release of the July Fed meeting minutes, the key takeaway being that the Fed likely won’t be finished with rate hikes until inflation is tamed across the board, with no guidance offered on future rate increases either.

“With the tight correlation between US equities and crypto in recent months I suspect this has filtered through to crypto markets and it’s why we are seeing the sell-off. The trend has also perhaps been exacerbated by liquidation of long positions on bitcoin perpetual futures markets.”

Bitcoin was not alone in the Friday plunge. Its closest rival, Ethereum also saw a price drop from $1,808 to $1,728. Others like Binance Coin, Cardano and Solana also took a plunge.

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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.