• Bitcoin, the largest cryptocurrency by market cap, traded near US$19,600 – well below June’s closing price, extending its rout to almost 60% for this year.
• Nonetheless, some analysts say that the recent trading pattern presents a buying opportunity.

Bitcoin dipped below the psychologically-important US$20,000 level over the weekend, held down by rumors that some 137,000 Bitcoin recovered from the 2014 hack of Mt. Gox may hit the market as liquidators attempt to recover lost funds and policy hawkishness.

Headed into the weekend, risk appetite was already weak, with U.S. Federal Reserve Chairman Jerome Powell warning investors not to price in a pivot to loosening policy, causing cryptocurrencies to extend losses with Bitcoin dipped below US$20,000 for the first time since mid-July.

At the time of writing, Bitcoin, the largest cryptocurrency by market cap, traded near US$19,600 – well below June’s closing price, extending its rout to almost 60% for this year.

Making matters worse, rumors have been spreading throughout the market that the recovery and possible sale of 137,000 Bitcoin could hit the market as liquidators for Bitcoin exchange Mt. Gox finally seek resolution from its 2014 implosion.

Powell has signaled that the Fed is likely to keep raising interest rates high and leave them elevated for a while to stamp out inflation, pushing back against any idea that the central bank would soon reverse course.

Powell’s speech at the annual Jackson Hole economic symposium sent shockwaves through equities markets and U.S. stocks lost a combined US$1.25 trillion on the day, with the market cap for cryptocurrencies dipping below US$1 trillion.

Nonetheless, some analysts say that the recent trading pattern presents a buying opportunity.

According to CryptoQuant, onchain metrics “signal that the price is at the accumulation zone, which has been historically market bottom formations and value investing”.

Bitcoin dipped below the psychologically-important US$20,000 level over the weekend, held down by rumors that some 137,000 Bitcoin recovered from the 2014 hack of Mt. Gox may hit the market as liquidators attempt to recover lost funds and policy hawkishness.

Headed into the weekend, risk appetite was already weak, with U.S. Federal Reserve Chairman Jerome Powell warning investors not to price in a pivot to loosening policy, causing cryptocurrencies to extend losses with Bitcoin dipped below US$20,000 for the first time since mid-July.

At the time of writing, Bitcoin, the largest cryptocurrency by market cap, traded near US$19,600 – well below June’s closing price, extending its rout to almost 60% for this year.

Making matters worse, rumors have been spreading throughout the market that the recovery and possible sale of 137,000 Bitcoin could hit the market as liquidators for Bitcoin exchange Mt. Gox finally seek resolution from its 2014 implosion.

Powell has signaled that the Fed is likely to keep raising interest rates high and leave them elevated for a while to stamp out inflation, pushing back against any idea that the central bank would soon reverse course.

Powell’s speech at the annual Jackson Hole economic symposium sent shockwaves through equities markets and U.S. stocks lost a combined US$1.25 trillion on the day, with the market cap for cryptocurrencies dipping below US$1 trillion.

Nonetheless, some analysts say that the recent trading pattern presents a buying opportunity.

According to CryptoQuant, onchain metrics “signal that the price is at the accumulation zone, which has been historically market bottom formations and value investing”.