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Crypto crash: why has Bitcoin dropped so low?
Bitcoin dropped below the price of $30,000 for the first time since January 28.
Bitcoin dropped below the USD$30,000 mark for the first time since late January before pulling back above the mark to settle at around the USD$33,000 mark.
The dramatic drop comes just days after Chinese officials moved to prevent financial institutions from facilitating transactions that involve digital coins.
Just a few months ago, Bitcoin was hitting record highs… but fell substantially after global concerns were raised about the environmental impacts of the coin.
It spent a little more than three months rising exponentially, and it has now spent a little less than three months falling exponentially
Eric Diton from The Wealth Alliance says “what determines the value of Bitcoin is acceptance and more demand and supply.
He continues noting “when you have a country like China come out against Bitcoin, that really hurts its global acceptance and that’s why you’re seeing the value deteriorate.”
Is there a lot of fear surrounding bitcoin?
Bitcoin is in a free fall – tumbling to a two-week low amid an intensifying cryptocurrency crackdown in China.
China announced on Monday that it summoned officials from its biggest banks to a meeting to reiterate a ban on providing cryptocurrency services. It’s the latest sign that China plan to do whatever it takes to close any loopholes left in crypto trading.
Bitcoin is now down more than 50 per cent from its record high.
Bitcoin was priced at 30,000 at the beginning of the year, and while is has recovered a bit, publicly traded companies like Coinbase and Tesla have learned what a rollercoaster cryptocurrency can have.
The original cryptocurrency has formed a death cross, meaning its average price over the last 50 days fell below that of its 200-day moving average.
Dogecoin is enduring its ninth straight day of losses, with its currency losing the hype of the joke.
“There’s just a lot of fear, and when there’s fear, people sell risky assets. I do think that Bitcoin’s still perceived as a risk-on asset,”
Meltem Demirors, chief strategy officer at CoinShares, said on Bloomberg’s “QuickTake Stock” streaming program.
The world’s largest cryptocurrency by market value is still up about 11 per cent year to date, according to Coin-Desk 20 data
Meanwhile, GameStop shares rose 10 per cent after the videogame retailer sold more than $1 billion in fresh shares.