Bitcoin returns above $ 20,000, Ethereum exceeds $ 1,000 - decipher

Bitcoin returns above $ 20,000, Ethereum exceeds $ 1,000 – decipher

After a weekend of relentless losses, the two best cryptocurrencies achieved a marginal recovery on Sunday, climbing above $ 20,000 and $ 1,000, respectively.

BTC has recovered by just over 15% in the last 24 hours, recovering from a shockingly low of $ 17,772 yesterday, at $ 20,482 at the time of writing, according to CoinMarketCap. ETH, which fell to $ 898 yesterday, recovered by over 25% last day to $ 1,130 at the time of writing.

Fluctuations in prices mean at least a temporary break from a sharp drop last week. Last week, BTC fell below $ 26,000 for the first time in a year, a negative turning point that caused a huge sale. Yesterday, BTC fell below $ 20,000, then $ 19,000, then $ 18,000, all in one day. ETH fell fairly consistently along with BTC, falling to $ 898 by yesterday afternoon, a noticeable drop of over 46% in just one week.

By falling below $ 20,000 and $ 1,000 yesterday, BTC and ETH created market conditions that experts said could cause a wave of forced liquidations. In such a scenario, large investors in both cryptocurrencies would be forced to close positions on BTC and ETH derivatives, with prices too low to generate enough collateral. Such events would probably push the prices of BTC and ETH even further, causing more liquidations, in what is known as the “cascade effect”.

But by recovering, even slightly, to levels above $ 20,000 and $ 1,000 today, BTC and ETH have temporarily halted the sell-off that some analysts have said could send BTC to only $ 13,800 in the current bear market.

The severity and duration of the crypto bear market remains unclear. The latest decline in cryptocurrencies began early last month, when the main coins fell along with the stock market. Since then, the crypto market has struggled to recover, and each new wave effect of the crash has caused further damage. The latest consequences came last week when crypto lenders Celsius i Babel frozen payments to all customers, citing potential liquidity problems. Major crypto investment company Three Arrows Capital it may also be at risk of insolvency.

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