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Author: Admin | 2025-04-28
Pic.twitter.com/OC8kGXAUSd— Lina Seiche (@LinaSeiche) June 20, 2021The bear market didn’t last long despite China starting a major crackdown on local mining farms. The bullish trend returned by the end of July, with Bitcoin eventually surging to its still-unbroken all-time high of $68,000 posted in November 2021.Bear market No. 5: Bitcoin plummets from $68,000 to below $20,000 in 2022Time to retest previous high: to be determinedBitcoin failed to break $70,000 and started dropping in late 2021. The cryptocurrency has slipped into a bear market since November last year, recording one of its biggest historical crashes in 2022.In June, the cryptocurrency plunged below $20,000 for the first time since 2020, fueling extreme fear on the market.The ongoing bear market is largely attributed to the crisis of algorithmic stablecoins — namely the TerraUSD Classic (USTC) stablecoin — which are designed to support a stable 1:1 peg with the U.S. dollar through blockchain algorithms rather than equivalent cash reserves.USTC, once a major algorithmic stablecoin, lost its dollar peg in May. The depegging of USTC triggered a massive panic over broader crypto markets as the stablecoin had managed to become the third-largest stablecoin in existence before collapsing.The collapse of Terra caused a domino effect on the rest of the crypto market due to massive liquidations and uncertainty that fuelled a crisis in cryptocurrency lending. A number of global crypto lenders like Celsius had to suspend withdrawals due to their inability to maintain liquidity amid brutal market conditions.Bitcoin has historically seen its price trade below previous highs for more than three years. The previous peak of $68,000 took place just seven months ago, and it’s yet to be seen whether and when Bitcoin would return to new heights.
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