How Low Could Bitcoin and Ethereum Prices Go?

After the prices of bitcoin, ethereum, and other cryptocurrencies saw big drops this week, several experts say it could get even worse amid a broader investor sell-off of risky assets. The price of bitcoin fell more than 30% over the last week to just under $21,000, and Ethereum followed a similar trend. The second-largest crypto dropped close to $1,000 Thursday.

The stock market rallied Wednesday afternoon after the Federal Reserve raised interest rates by 75 basis points, the largest increase since 1994. But the crypto market didn’t follow, which could be a troubling sign for some investors.

Bitcoin was unable to muster up a rally despite a broad rally on Wall Street following the Federal Open Market Committee (FOMC) decision. If a big rally on Wall Street can’t excite crypto traders, bitcoin could be in trouble. The $20,000 level is holding, but it looks like no one wants to jump back in on the crypto trade.

Some economists warn this may be the beginning of a crypto winter, an extended period when prices fall and remain low, such as they did in between early 2018 and mid-2020. If bitcoin drops below $20,000, several experts predict it could go far lower.