The price of the leading cryptocurrency has dropped through a critical $20,000 support level as the digital token continues to collapse.
It’s the lowest price for Bitcoin since 2020, with analysts expressing concern that sentiment for the cryptocurrency could continue to plummet.
In the latest price drop, Bitcoin fell below $19,000, losing around 9% of its value in 24 hours.
Bitcoin has lost around a third of its price in the past seven days.
As recently as late 2021, Bitcoin was trading at more than three times its current price, demonstrating how quickly the cryptocurrency has fallen from grace.
Along with Bitcoin, other cryptocurrencies have lost significant amounts of value in recent days.
The entire crypto market lost 7% of its value in a day, with the second-largest token, Ethereum, falling by 9% in a day and by 40% in the past week.
Various factors are driving this latest fall in the value of cryptocurrencies, including the failure of two projects, Terra Luna and Celsius.
Both projects were designed to promote the stability of decentralised finance, but their collapse has undermined confidence in the broader crypto ecosystem.
Also damaging sentiment is the current volatility in traditional investment markets, prompted by worries around rising price inflation, higher interest rates, and slower economic growth.
Bitcoin was last priced at $20,000 in November 2020, when it was rising in price due to growing interest in cryptocurrencies following the pandemic.
Now losing value, the sentiment for cryptocurrency has changed significantly, with widespread concerns about the instability of digital currencies and negative views towards the wider tech sector.