Bitcoin lost nearly 10% in the last 24 hours. It fell below $30,000 for first time since July 2021. Analysts are worried that the biggest cryptocurrency may fall even more.
BTC’s Tuesday decline is more than 55 percent lower than its November 2017 all-time high of $69,000. Bitcoin prices are down 34% year-to-date.
Bitcoin prices are down 34% year-to-date. The world’s most sought-after crypto asset plunged to $29,870.30 around 8 p.m. EST, TradingView data shows.
Shiba Inu is the largest dollar holder among Wealthiest Ethyl Whales| Shiba Inu: Biggest Dollar Holding Among Wealthiest Ethereum Whales
Bitcoin and Stocks are Correlated
Traditional financial markets and cryptocurrencies both saw a sell-off as a result of the Federal Reserve’s aggressive monetary tightening and recession fears.
Last time that the biggest cryptocurrency market value fell below $30,000 was July 20, 2021 when it reached $29301, before rebounding.
The correlation of stock prices with Bitcoin and cryptocurrency market has increased as more institutions join them over the past year. Wall Street faces a tough day, as technology stocks are still experiencing significant declines. Inflation in the Nasdaq decreased 4.3%.
BTC market capital at $594 billion according to the daily chart. Source: TradingView.com| Source: TradingView.com
BTC falling lower as analyst sees
Bitcoin could “perhaps receive a mini-bounce near $35,000, but unless we break the trend line at around $37,000, I’m predicting for $29,000 in the coming weeks or week,” says crypto analyst Wendy O in a new social media video.
Numerous cryptocurrency investors have suggested that Bitcoin is the digital era’s version of gold, a potential flight-to-safety investment and inflation hedge.
The market doesn’t view cryptocurrencies as stable value reserves during economic turmoil, based on their price behavior.
Suggestions for Reading: Bitcoin Carnage Continues Despite BTC’s Destruction To $34K| Bitcoin Carnage Continues As BTC Disintegrates To $34K
Crypto Market is Feeling the pinch for weeks
Similarly to the stock market, the cryptocurrency market has been under pressure for weeks as investors cope with sustained growing inflation, the ongoing swirl of economic events deriving increasingly from Russia’s invasion of Ukraine, and stricter U.S. monetary policy by the Fed.
“Bitcoin’s long-term fundamentals are intact, but a recovery to record highs will take a very long time. Bitcoin will begin to stabilize when the carnage on Wall Street finishes, and many investors are still in panic-selling mode right now,” Edward Moya, senior market analyst at Oanda, stated.
The central bank increased interest rates by 50 basis points last week and pledged to shrink its holdings; instead of purchasing bonds to stimulate the economy, it will dispose of them to combat inflation.
Cryptocurrencies’ values are highly volatile. This is something experts believe crypto investors will face in the future.
Featured image Pexels and chart by TradingView.com