In September of last year, the average price of Bitcoin was $45,965. At that time, it hit and surpassed the $50K mark.
It did so when it closed on September 4, 2021 at $50,000, September 5 at $51,692, and September 6 at $52,644.49.
But the biggest cryptocurrency is struggling to repeat that kind of run this year as it continues to struggle to even hold the $20K price range by market capitalization.
As of this writing, BTC is trading at $18,802, according to the data CoinGecko. It rose slightly on Tuesday, reaching above $23,300.
Source: CoinGecko
While Bitcoin has only lost 0.4% of its value over the past seven days, it has now lost 4.4% of its value over the past 30 days. Moreover, the current transaction value is 55.5% lower than a year ago.
Bitcoin price continues to struggle
The crypto space experienced a major crash between May and June of this year when its total market value dropped by $2 trillion.
Bitcoin was hit hard as a result and has been trading between $18,000 and $25,000 ever since.
That’s not the only thing struggling as the digital asset’s price slipped 1% to $19,078 and retreated into the bearish direction.
Over the past few months, central banks have been leaning on interest rates to deal with the economic crisis, which seems to be the main driving force behind the devastation in the crypto space.
The crypto industry has seen significant losses and insolvency cases that have affected the mass run test of digital assets.
Will Bitcoin Fall Below $18K Again?
Some experts believe that the widely followed crypto will face a sharp drop again when certain conditions occur.
If inflation rises between 9.5% and 10%, it is believed that the US Federal Reserve may hold an emergency meeting to discuss another round of interest rate hikes.
If this happens, leveraged participants in the crypto markets will again be negatively affected and this could cause the price of Bitcoin to drop below $18,000.
On June 18, 2022, BTC fell to a low near that price due to the negativity brought about by the bankruptcy of Three Arrows Capital and Celsius.
BTC total market cap at $357 billion on the daily chart | Source: TradingView.com Featured image from Fox Business, Chart: TradingView.com