The recent market plummet has left many shellshocked. 2022 has witnessed one spectacle after another. First, we saw the death of a blockchain, Terra, and now we may be on the verge of witnessing another in Celcius. However, all eyes are on the original cryptocurrency, Bitcoin (BTC), as it tests the $20,000 mark. This is a very significant level as it is the peak of Bitcoin’s bull run in 2017.
As reported previously, Arthur Hayes, CEO of BitMEX, shared his thoughts on what would happen if Bitcoin (BTC) fell below $20k, and Ethereum (ETH) below $1k.
If these levels are crossed, Hayes said,
“As far as the charts go, you better get out your Lord Satoshi prayer book, and hope the lord shows kindness on the soul of the crypto markets. Bc if these levels break, you might as well shut down your computer bc your charts will be useless for a while.”
Global Block analyst, Marcus Sotiriou, also shares the same sentiment. He said if BTC drops below $20,000, there can be further negative consequences. Sotiriou brought up the debate surrounding Celsius, the potential insolvency of the business, and the apparent liquidity crisis that compelled Celsius to halt all customer withdrawals earlier this week.
While speaking to Decrypt, Sotiriou stated,
“Celsius [is] in big trouble, and if the whales who have leveraged bets on Bitcoin and Ethereum get liquidated this would result in further downside.”
However, some are optimistic about Bitcoin’s return. Sam Callahan, an analyst for Swan Bitcoin, believes that BTC could fall to the $13k mark, and is not worried because falling below $20k would create a lot of buying pressure.
This viewpoint is also shared by Yuya Hasegawa, a BTC market analyst with the Japanese cryptocurrency exchange Bitbank.
While speaking with Decrypt, Hasegawa said,
“I think Bitcoin could go under $20k temporarily but will likely recover the level around it quickly.”
Bitcoin maximalist, Micheal Saylor, and his firm Microstrategy also heavily betted on BTC. They are still the largest holders of BTC in the world, and also share the opinion of Bitcoin pulling out of its current predicament.
At press time BTC was trading at $21,082.18, up by 2.8% in the hourly chart, but down by 4.2% in the 24-hour chart.