For the first time since June 22nd, Bitcoin fell below $ 30,000, a drop that has brought other cryptocurrencies.
According to CoinMarketCap data and as reported by CNBC, the decline came when $ 89 billion was wiped away from the crypto market in just one day early Tuesday morning. With Bitcoin down 5 percent, Coindesk reports that Ether is down 6 percent and XRP is down nearly 9 percent, all of which a day after the Dow Jones Industrial Average had its worst 24-hour range since October.
“There has been a widespread sell-off in global markets and risk assets have declined across the board,” said Annabelle Huang, partner at Amber Group. Huang added that there were “concerns about the quality and strength of the economic recovery” and “more general risk assets, including high returns, have weakened.”
Bitcoin’s price has also fallen about 50 percent since hitting an all-time high in April before a crypto breakthrough in China saw the currency go from $ 44,000 to as much as $ 30,202 in just one day in May fell.
“The Chinese position on cryptocurrencies is clear from the start: The trading and use of cryptocurrencies are simply prohibited,” wrote Ipek Ozkardeskaya, senior analyst at Swissquote, as reported by CNN. “As such, the news is nothing ‘new’, but as crypto traders are too sensitive to negative news these days, it increases the downward pressure on cryptocurrencies.”