Bitcoin is recovering after falling below $20к

Over the weekend, bitcoin fell below the key resistance level of $20 thousand. According to the CoinMarketCap portal, which calculates the average price for more than 20 exchanges, the cost of bitcoin decreased by 9% – to $ 18,955 thousand.

On Monday, the bitcoin exchange rate recovered somewhat – to the level of $20,775. Despite the local growth, more and more economists are talking about the so-called «crypto winter», comparable to the 2-year period of 2017-2018. Then, in the period from December 2017 to June 2018, the cryptocurrency sector decreased from $850 million to $250 million, that is, by more than 70%. 

In 2022, the cryptocurrency market has gone from the peak of its capitalization (more than $3 trillion) to less than $1 trillion in just a few months. 

Analysts note that after November 2021 (when bitcoin rose to a historic high of $69 thousand), the cryptocurrency market was under pressure from several factors, which eventually led to the picture that we are seeing today. Here we can highlight the general «bearish» trend that affects all risky assets, as well as the collapse of the TerraUST stablecoin and the difficulties faced by major crypto platforms such as Coinbase and Celsius.