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Bitcoin Briefly Drops Below $20,000 Again As Pressure Continues To Mount On Crypto Market

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On Wednesday, the price of bitcoin dipped below $20,000 for a short period for various reasons, including concerns about the macroeconomy and troubles with cryptocurrency firms, which continued to weigh on the market.

According to statistics provided by CoinMetrics, the most valuable cryptocurrency on the market was trading up by less than 1 per cent at $20,359.25 at the time of writing. In the early hours of Wednesday, the price of bitcoin reached a low of $19,841. The value of other digital currencies, such as ether, also fell. In the past two weeks, bitcoin’s price has been trading within a narrow range, and it has been unable to make a significant move much higher than $22,000.

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“A narrative that could well play out for the rest of the year and beyond is guiding bitcoin lower today, one of a looming recession and mushrooming levels of inflation,” analysts at cryptocurrency exchange Bitfinex said in a note on Wednesday. “A narrative that could well play out for the rest of the year and beyond guides bitcoin lower today.”

Concerns about a potential economic slowdown in the United States and other countries have been stoked by persistently rising inflation and central banks’ plans to raise interest rates further.

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