The price of Bitcoin (BTC) has fallen below the $25,000 mark for the first time since March 17 following a hawkish Fed announcement amid another turbulent week for the crypto industry.
What Happened?
On June 15, 2023, the price of Bitcoin fell from $25,867 to $24,819 within the span of 30 minutes. This represents a decline of 4%. The sell-off was sparked by a hawkish announcement from the Federal Reserve, which signaled that it is prepared to raise interest rates more aggressively in an effort to combat inflation.
The Fed’s announcement came amid a week of turmoil in the crypto industry. On June 13, Celsius Network, a major crypto lending platform, announced that it was pausing withdrawals, swaps, and transfers between accounts. This sent shockwaves through the crypto community, as Celsius was one of the largest crypto lenders and had over $11 billion in assets under management.
The following day, Three Arrows Capital, a major crypto hedge fund, was reportedly facing liquidation. Three Arrows Capital had invested heavily in Luna, a Terra-based stablecoin that collapsed earlier this month. The collapse of Luna wiped out billions of dollars in value and led to a sell-off in other cryptocurrencies.
What Does This Mean for Bitcoin?
The decline in the price of Bitcoin is a sign that the crypto market is still in a state of flux. The sell-off was triggered by a number of factors, including the Fed’s announcement, the Celsius crisis, and the collapse of Luna.
It is unclear how long the current bear market will last. However, some analysts believe that Bitcoin could fall as low as $10,000 before it starts to recover.
What Can Investors Do?
Investors who are holding Bitcoin should be prepared for further volatility. If you are considering buying Bitcoin, it is important to do your research and understand the risks involved.
Here are some tips for investors who are considering buying Bitcoin:
- Only invest what you can afford to lose.
- Do your research and understand the risks involved.
- Invest for the long term.
- Don’t panic sell if the price of Bitcoin falls.
Conclusion
The decline in the price of Bitcoin is a sign that the crypto market is still in a state of flux. The sell-off was triggered by a number of factors, including the Fed’s announcement, the Celsius crisis, and the collapse of Luna.
It is unclear how long the current bear market will last. However, some analysts believe that Bitcoin could fall as low as $10,000 before it starts to recover.
Investors who are holding Bitcoin should be prepared for further volatility. If you are considering buying Bitcoin, it is important to do your research and understand the risks involved.
