The world’s leading cryptocurrency has fallen below the significant psychological mark of $30,000 as a market slump across the board continues to sting all major cryptocurrencies.
For weeks, Bitcoin had been trading sideways between $32,000 and $34,000 with few glimmers of movement north or south of its narrow channel.
There had been occasional talk of a break-out to the upside, but much of the past month has been dominated by whispers of a potentially huge correction for cryptocurrencies, set against the backdrop of a narrative involving inflation, Chinese clampdowns, government-backed stablecoins and Covid-hit economic recovery.
It now looks as though the latter – Covid-19’s effect on global shares – might be the tipping point that drove Bitcoin under $30k and down to $29,585 in the early hours.
The knock-on effect rippled through the entire market, with Ethereum also suffering a drop from $1,821 to $1,728, Cardano plummeting to $1.05, Litecoin to $105, and Binance’s BNB to $259.
Alarmingly, there are woefully few analysts willing to add a positive spin to this morning’s sea of red across the markets, with many anticipating further falls to come. Particularly as more countries report a stuttering start to their post-Covid economic recovery programs.
This morning’s dramatic movement turned almost $100bn to dust following a huge sell-off in world stock markets as the combination of inflation and poor recovery rattled nerves in the Dow Jones, NYSE and Nasdaq.
It’s a far cry from the record highs of April which saw Bitcoin top $65,000, Ethereum touch $4,196 and Cardano crack $2.46.
Despite the reaction to the stock markets, inflation and recovery programs, fingers are also still being pointed at the Chinese government’s growing disdain towards cryptocurrency. Beijing recently warned companies not to offer or deal with cryptocurrency, and has forced thousands of Bitcoin miners to shut down or move their operations out of the country.
Bitcoin (BTC) is currently changing hands for $29,770, Ethereum (ETH) $1,760, Cardano (ADA) $1.06, Litecoin (LTC) $106, and Binance Coin (BNB) $266.