Bitcoin made another fall on Monday, extending its drop below $20,000, amid concern over the Federal Reserve’s rate-hike path.
The largest crypto token fell as much as 2.3 percent today to $19,527. This means the currency is on course to decline for a fifth straight day.
Bitcoin’s drop was part of a wider cryptocurrency-market retreat. The MVIS CryptoCompare Digital Assets 100 Index dropped as much as 2.5 percent.
It comes after U.S. stocks fell at the end of last week on Friday following Fed Chair Jerome Powell’s speech at the Jackson Hole conference.
Experts said that money is flowing out of risky assets. Crypto followed the sharp adjustment of the U.S. stock market after Powell’s remarks, and Bitcoin is now resuming to be a high-beta asset, they said.
The $20,000 level acted as support for Bitcoin when it hit lows in recent months. The cryptocurrency had worked up to a higher value in recent weeks. Before the weekend, it had not hit below $20,000 since July 14.
The fluctuation in the crypto market comes amid wider uncertainty about the path and magnitude of Fed rate hikes and the effect they could have on riskier assets.
Numerous strategists have flagged $20,000 as a key point for Bitcoin. Experts say some points underneath this, in the $17,500-$19,500 range could be key areas as well, with the lower end of that scale signifying a 100 percent alternate wave projection of the most recent decline from mid-August.
Close behind that, crypto doesn’t look pretty, strategists said.
The past two Fridays have been rough for the crypto market. The second biggest cryptocurrency Ether slid as much as 4.1 % percent today as well to $1,422.67, continuing a decline from around $2,000 a couple of weeks ago. It too has been fluctuating but comes ahead of the much-anticipated Merge upgrade, due in mid-September.