Bitcoin extended its drop below $20,000 on Monday because of a wider cryptocurrency market retreat. The largest token fell as much as 2.3% today to $19,527. It is a fifth straight day of declines as the US stock had also fallen on Friday, followed by Fed Chair Jerome Powell's speech at the Jackson Hole conference. The wider crypto market retreated itself on Monday.
MVIS CryptoCompare Digital Assets 100 index had dropped to 2.5%. The $20,000 level has acted as the support system for Bitcoin when it has hit its low in recent months.
Still, the cryptocurrency had gone up to new heights in recent weeks, as on Saturday, it hadn't been below $20,000, infact it hadn't been below $20,000 since July 14 and had even crossed above $25,000 earlier this month.
This drop has come amid the uncertainty about the path, the magnitude of Fed rate hikes, and the effect they could have on riskier assets. Even Numerous strategists have flagged $20,000 as a key point of Bitcoin, though levels of support could be much lower.