Bitcoin takes a beating at $27K as Crypto Economy settles just above $1 Trillion


The global cryptocurrency market was on course for another drop on Saturday as Bitcoin and other major cryptocurrencies took a significant hit throughout the day.

The $1.19 trillion crypto industry is currently worth less than it was in July of last year. Last week, most of the leading cryptocurrencies including Bitcoin, Cardano, Ethereum, Solana and others extended their losses against the US dollar.

In general, the major cryptocurrencies have lost between half and 80% of their historical price peaks.

BTC price dipped below $30,000 on Saturday following the release of a critical inflation report on Friday, which showed little indication that price declines will soon start to cool.

Suggested Reading | Dogecoin mining revenue fell massively in the last 12 months

Bitcoin crashes to $27K

At the time of writing, Bitcoin (BTC) is taking a beating and trading at $27,560.18, down 7.8% over the past seven days, Coingecko data shows. This came after the world’s largest cryptocurrency was stable at $30,000 for two days.

The dominant cryptocurrency has been trading inside a tight range for weeks as stock and crypto markets have struggled to regain significant upside momentum following a month-long sell-off.

Analysts also point to the ongoing conflict in Ukraine and concerns about a tightening of monetary policy by the US central bank as reasons for the drop in equity and cryptocurrency values.

BTC total market cap at $523 billion on the weekend chart | Source: TradingView.com

Darshan Bathija, CEO and co-founder of Vauld, explains:

“We are witnessing frequent short-term volatility spikes as market participants are trading within a restricted range due to uncertainty regarding the crypto market’s response to macroeconomic conditions.”

Currently, the cryptocurrency market has lost 6.1% in the last day alone. This number is lower than the lows recorded in July 2021, when the market cap hit $1.32 trillion. The entire crypto economy has not been priced this low since the first week of February 2021.

Bitcoin fell to two-week lows on June 11 as bears wrapped up trading for the week on Wall Street.

‘Substantial rebound’ ahead

The BTC/USD pair fell along with stock markets on Friday, ending the week with a sharp loss: the S&P 500 and Nasdaq Composite dropped 3% and 3%, respectively.

Meanwhile, despite the negative reports, investors can anticipate a “substantial rally” in the fourth quarter of this year for the USD value of bitcoin.

According to Nigel Green, CEO and founder of deVere Group, Bitcoin is very much associated with global stock markets, and they are all close to bottoming out.

“I think we will soon see an uptrend leading to a significant bounce in the fourth quarter of the year for the world’s leading digital currency,” Green said.

Suggested Reading | Ethereum prices drop for fourth session in a row as ETH trades below $1,800

Featured image from Inc Magazine, chart from TradingView.com

Source link

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *