CNBC’s Squawk Box recently hosted former Mad Money host and hedge fund manager, Jim Cramer. During the interview, Cramer warned investors about their cryptocurrency investments. He also predicted that the price of Bitcoin would still reach $12,000.
Cramer: Bitcoiners need to intervene right now
Bitcoin bulls must take the necessary steps to ensure that its price does not capitulate. According to him, the industry is already in a precarious situation. A new Bitcoin price low would put the market in greater danger. He added that if Bitcoiners do not take the necessary steps, Bitcoin could soon be trading at $12,000.
Cramer would do well to take his advice. Last week, the former hedge fund manager stated that he strongly believes in BTC Y ETH. According to him, the two major digital assets are the only “genuine” cryptocurrencies. Cramer further said that he has holdings in cryptocurrencies. Therefore, he cannot advise anyone not to invest in cryptocurrencies.
Bitcoin miner revenue falls to a new 12-month low
Data from blockchain.com showed that lBitcoin miner earnings are at a 12-month low. That explains the sharp drop in share prices of Nasdaq-listed miners. Hut 8 mining stocks and Marathon Digital have fallen more than 40% in the last 30 days. Earlier in the week, the Bitcoin hash rate hit new highs.
In addition, multiple data indicate that the bitcoin mining it is now hugely competitive and costs have risen significantly. Therefore, Bitcoin mining has become more difficult. Bitbank crypto analyst Yuya Hasegawa warned that “Bitcoin price recovery could be slow if the current situation holds.” According to him, miners will start selling their Bitcoins once there is a price rally.
Bitcoin price drops below $20,000
BTC price action broke $20,000 support on June 18indicating that Bitcoin (BTC) has plunged into a bear market.
The data shows that BTC has fallen below $20,000 for the first time in almost two years. Currently trading at $19,091. There have been intense sell-offs in the crypto market following a larger-than-expected rate hike by the US Federal Reserve.
The sell-off had started last week after the release of the Consumer Price Index (CPI) data, which was higher than expected. In addition to breaking below its support, Bitcoin also recorded another first. It is the first time in its history that it will drop below its previous half-cycle peak.
Industry analysts cited three reasons for this new weakness in Bitcoin. According to them, the general macro environment, Celsius’s problems Y liquidity problems in 3AC they are the reason why Bitcoin broke its $20,000 support level.
worst month in history
Based on this development, it is the first time in the first two weeks of any month that BTC/USD would post a 37% loss. Therefore, June 2022 is the worst June in BTC history, according to on-chain analytics platform Coinglass.
Historical bear market data indicates that 80-84.5% is the classic drawdown target. Therefore, the lowest BTC/USD you can reach during this bear market would be between $11,000 and $14,000.