Bitcoin (BTC) drops below $ 30,000 as cryptocurrency market plunges

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A representation of the Bitcoin virtual currency is seen in front of a stock chart in this illustration taken on May 19, 2021.

Dado Ruvic | Reuters

Bitcoin fell below $ 30,000 for the first time since June 22, dragging the other digital coins down.

About $ 98 billion was wiped out of the entire cryptocurrency market in 24 hours at 12:29 a.m. ET on Tuesday, according to data from CoinMarketCap.

Bitcoin fell more than 6% while Ether fell almost 9% and XRP fell almost 10%, according to data from CoinDesk.

The bitcoin plunge came after a massive sell-off in global stock markets. On Monday, the Dow Jones Industrial Average had its worst day since last October.

“There has been a large sell-off in global markets, risk assets are down across the board,” said Annabelle Huang, partner at cryptocurrency financial services firm Amber Group.

There are “concerns about the quality and strength of the economic recovery” and “broader risk assets have weakened, including high yields,” Huang said. “Coupled with the recent weakness in BTC (bitcoin), this has just pushed the crypto market further down. “

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Since bitcoin’s historic high of nearly $ 65,000 in mid-April, its price has plunged more than 50%.

Regulatory control

Regulators around the world are also taking a closer look at the crypto space.

Binance, the world’s largest cryptocurrency exchange, was barred last month by UK authorities from carrying out regulated activities in the country. Regulators in Japan, Canada and Thailand have also issued warnings regarding Binance.

“In general, we are seeing more regulatory focus on crypto and bitcoin,” said Vijay Ayyar, business development manager at Luno, the cryptocurrency exchange.

More sales to come?

Bitcoin’s fall below $ 30,000 could be significant, according to Ayyar, who said the sell could drop to test the $ 22,000 level at $ 24,000.

From that point on, bitcoin could trade in a range.

“I would see bitcoins between $ 20,000 and $ 40,000 ($ 20,000 to $ 40,000) for quite some time now before any uptrend returns,” Ayyar said.

Kinetic Capital’s Chu also sees potential for sales ahead.

“First quarter crypto market momentum has stalled and threatens a further reversal potentially below $ 25,000 levels,” Chu said.


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