Cryptocurrency Market

Bitcoin price dived below the $30,000 mark for the first time since June 22, while also engulfing other virtual currencies.

Bitcoin price dives below $30,000 for the first time since June 22.

According to aggregated data by CoinMarketCap, about $98 billion worth of cryptocurrencies have “evaporated” in the last 24 hours, as of 12:29 on July 20 ET (North America). Bitcoin has lost more than 6%, Ether has fallen by nearly 9% and XRP has fallen by nearly 10%, as compiled by CoinDesk.

Bitcoin price fell deeply after the world stock market suffered a large-scale sell-off. The Dow Jones Industrial Average of the US last night had its worst session since October 2020 after losing 725.81 points and closing at 33,962.04 points. The S&P 500 fell 1.59% to 4,258.49 and the tech-biased Nasdaq Composite dropped 1.06% to 14,274.98.

“There has been a large-scale sell-off in the global market, with risk assets falling across the board,” said Annabelle Huang, an expert from virtual currency financial services firm Amber Group. There have been concerns about the quality and strength of the economic recovery, and higher risk assets have weakened, including those that yield returns, she said. high. “Along with Bitcoin’s recent weakness, this only drives the cryptocurrency market further down,” added Ms. Huang.

Since peaking at nearly $65,000 in mid-April, the price of Bitcoin has so far slid more than 50% due to consecutively receiving tough messages from countries.

A fresh crackdown on cryptocurrency trading and mining in China continues to weigh on Bitcoin prices. Factories that play a key role in Bitcoin mining in China have been forced to close at the request of local authorities.

In addition, the Central Bank of China has “reminded” financial institutions and financial technology (fintech) companies not to provide virtual currency-related services to customers.

In 2027, China banned virtual currency exchanges from operating in the country, forcing these exchanges to move operations abroad. However, this move did not stop Chinese traders from buying and selling cryptocurrencies.

The tough actions of Chinese authorities since the beginning of the year have further tightened restrictions on trading and mining virtual currencies.

Jehan Chu, founder of virtual currency trading and venture firm Kenetic Capital, said: “All signals turn red as Bitcoin continues to suffer from China’s recent cryptocurrency ban. The country and the macroeconomic situation worsened due to the raging Covid-19 variant.”

Besides, authorities in many countries are also taking a closer look at the virtual currency space. Last month, Binance – the world’s largest virtual currency exchange – was banned from trading in the UK by regulations in the country. Authorities in Japan, Canada, and Thailand have also issued warnings against Binance.

Vijay Ayyar, Head of Business Development at Luno Cryptocurrency Exchange, said that joint efforts are aimed at establishing more regulation of cryptocurrencies and specifically Bitcoin. This expert said that Bitcoin’s price slide below $30,000 is a very important milestone and the sell-off could drag the price of Bitcoin down to $22,000-24,000.

Mr. Vijay Ayyar predicted Bitcoin will stabilize at $20,000 – $40,000 for a while before picking up a bullish signal again.

Similarly, Mr. Jehan Chu from the virtual currency trading and venture firm Kenetic Capital also thinks that Bitcoin has a high probability of selling off in the near future. The Kenetic Capital expert added that the crypto market momentum in the first quarter of 2021 has stalled and is threatening to see Bitcoin fall below $25,000.

A month ago, Bitcoin fell about 16% on the trading day of June 18 after some local governments in China ordered the closure of virtual currency mining workshops. As a result, nearly 300 billion USD in the world virtual currency market has been washed away since June 18.

Previously, $ 270 billion in the virtual currency market was also blown away when Bitcoin plunged below $ 40,000 on the trading day of May 19. Bitcoin plunged more than 13% to $38,585.86 at 12:54 on May 19 (ET). This is Bitcoin’s lowest price since February 9th – the last time the virtual currency slipped below $40,000.