Description:Temasek, the Singaporean government’s investment arm, predicts more market weakness in the months ahead.
As global markets sold off on Tuesday, sending stock indexes down and the euro closer to parity with the U.S. dollar, Bitcoin (BTC) also fell through a key support level and below $19,700.
Bitcoin’s price was rejected last week at the $21,800 mark, as seen by the charts. There was support at $20,500 over the weekend, and after falling to $19,700 in early Asian hours on Tuesday, it recovered.
When the European morning came around, the price had dropped back down to its previous level after briefly rising to about $20,000.
Technical research suggests that Bitcoin’s value may go as low as $18,700, a level it briefly touched earlier this month. In contrast, if Bitcoin were to rebound from its present lows, it may reach the $21,300 region over the next several weeks.
According to CoinDesk’s anonymous source, bitcoin’s price has dropped from its highs earlier this week and may fall to below $19,000 in the days ahead.
Stocks fell as Temasek Holdings, a Singaporean state-owned investment firm, predicted a “recession in developed markets” and warned of more market volatility. The firm oversees more than $287 billion in assets.
China confronts “challenges,” and the global economy is “in a fragile condition,” according to a statement released by Temasek, which also predicted a “moderate recession” in the United States for the next year.
At $1.0002, the euro’s value versus the dollar was its lowest in 20 years.
Weakness stemmed from worries that an oil crisis caused by Russia’s invasion of Ukraine would push the area into a recession, while the U.S. dollar gained strength from market speculation that the Federal Reserve would commit to quicker rate rises.