Will Bitcoin Fall to $13,800? — What an 80% Drawdown Will Look Like From Here

On Monday, June 15, 2022, the price of bitcoin hit $20,080 per unit, a low not seen since mid-December 2020. Numerous crypto advocates are debating whether this drop is a market bottom or whether this drop could lead to deeper losses. As of this writing, bitcoin is down 70% from its all-time high (ATH) of $69K, but traditionally, bitcoin has been known to drop about 80% or more from previously recorded ATHs.

Will Bitcoin Slide Down Over 80% This Time

The crypto economy has had a rough few weeks, as the leading crypto asset Bitcoin (BTC) lost 35% in the past 14 days. Speculators have gone from speculating whether it might be a bear market to saying it is definitely a bear market.

There has been a lot of capitulation over the past few days, and on Monday, hundreds of thousands of crypto traders were liquidated, about $2.2 billion. $1.3 billion Two days later, bitcoin fell to a low of $20,080 per BTC. BTCand, lastwas the last time BTCtraded at this price 17 months ago, in mid-December 2020.

At current USD values, Bitcoin is down 70% from the $69K ATH it hit on November 10, 2021 During the 2013 and 2017 bull runs, Bitcoin (BTC) fell more than 80% from its previous price peak It has fallen by. Bobby Ong,founder of Coingecko.com,tweetedabout Bitcoin’s drop from past bull runs, and he included Ethereum (ETH) in the 2017 rise.

For example, afterthe price of BTChit a high of about $1,127 per unit in 2013, by 2015BTChad fallen 82% at $200 per coin; Ong’s tweets showed that in 2017BTCjumped to $19,423 per piece, but by 2018 it had dropped to a low of $3,217, showing an 83% drop from the price high.

Co-founder of Coingecko explained that Ethereum fell 94% during the 2017-2018 price cycle; Ong’s tweet was published on June 11, 2022, when. the USD value of BTCwas 59% lower than ATH andthe value of ETHwas 69% lower. At the time of writing, theETH‘s s dollar value is 75.4% lower than the all-time high for crypto assets ($4815) reached on November 10, 2021.

Of course, there is a lot of speculation and theories about whetherBTCprices will drop from here.87} to 80% drawdown from BTCATH in 2021, an 80% drawdown would be would be approximately $13,800 per unit. If Ethereum were to drop 90% from last year’s ATH, the USD value would be about $488 per Ether. Some speculators predict thatBTCcould hit $12,000 per unit,ETHcould top $1,000 per unit, ETHcould hit $360 per unit, and

ETH

could hit $3,000 per unit.

A Drop Beneath $19K Wipes Out Pre-Halving Price Highs, Bitcoin Miners Struggle, Macroeconomic Disasters Continue to Shake Global Markets

(Drop Beneath $19K Wipes Out Pre-Halving Price Highs, Bitcoin Miners Struggle, Macroeconomic Disasters Continue to Shake Global Markets

So far, over $2 trillion worth has left the crypto ecosystem since the crypto economy ATH last year. Traders are alsoconcerned about the next half-life if miners only get 3.125per block discovery, the price should be much higher; only getting BTCper block discovery; below $19K per BTC

per BTCBelow $19K would wipe out the previous pre-Halving high. Additionally, using the currentexchange rate of BTCand $0.12 per kilowatt-hour (kWh), only seven ASIC mining rigs are making steady profits.

Bitmain’s Antminer S19 XP at 140 terahash/s (TH/s) can earn an estimated $3.49/day profit using the same power cost of $0.12/kWh. 126 TH/s Microbt Whatsminer M 50s atyields an estimated $1.51/day profit. The same electricity bill can yield a profit of BTC; at $0.12 per kWh, a machine that produces 84 TH/s will not be profitable unless it gets cheaper electricity resources.

All of these signs, and the thousands of crypto employees who have been laid off in the past few weeks, definitely indicate that this is definitely a bear market, and the question of whether an 80%+ drawdown will take place this cycle, and how long the bear market will last remains to be seen.

There are also macroeconomic disasters and fears of rising inflation, central bank rate hikes, and the ongoing war between Ukraine and Russia. While Americans and citizens of other countries have received stimulus money, bitcoin has steadily risen ATH. Bitcoin and the crypto market have never experienced a Covid-19 lockdown economy before, but the crypto economy has also never been tested under the current circumstances.

Image credits: Shutterstock, Pixabay, Wiki Commons, Feature Illustration Contributor Vlastas, Chart by Venture Capitalist Datastream,