Bitcoin and crypto will be dragged even further down

Bitcoin is in a very dark place at the time of writing. After trading at a new all-time high of $ 64,000 per unit in mid-April this year, the currency has fallen below the $ 30,000 mark again (for the second time in recent months) and is now trading for just over $ 29,000. This means that in just three months alone, the world’s leading digital currency by market capitalization has lost more than $ 35,000 in price and more than 50 percent in value.

Bitcoin continues to fall; Trading for under $ 30K

Additionally, Bitcoin appears to be pulling down other coins as well. In the course of a single day, nearly $ 90 billion in total valuation was removed from the crypto space. Bitcoin itself is down more than five percent, but many other big altcoins have joined the fall. Ethereum is down six percent while Ripple’s XRP is down nine percent during that time.

Experts believe the decline in Bitcoin and the crypto space is likely due to a recent sell-off in global stock markets. Annabelle Huang – a partner at crypto finance firm Amber Group – said in a statement:

There has been a widespread sell-off in global markets. Risk-weighted assets are declining across the board. Higher risk investments weakened, including high yield bonds. Coupled with the recent BTC (Bitcoin) weakness, this has only sent the crypto market down even further.

However, others disagree on what could potentially topple the entire industry. Many analysts believe that China has entered an area from which there is no return. The country has worked hard over the past few weeks to essentially wipe out its entire mining industry, which is a huge feat for many reasons.

For one thing, at one point in time, about 65 to 75 percent of all mining operations in the world were in China. Now many former companies are either struggling with evictions or have to close completely. Nor is this the first time China has persecuted cryptocurrency companies, as it banned local crypto exchanges about four years ago.

Other analysts also believe that ongoing COVID fears are likely to lead to market declines. The alleged delta variant of the coronavirus is winding its way through multiple regions, and it looks like traders are trying to keep as much money as possible for now.

Jehan Chu – founder of the crypto company Kenetic Capital – mentions in an interview:

All signals are red as BTC (Bitcoin) continues to be weighed down by China’s ultimate crypto ban and worsening macroeconomic conditions from a surge in COVID variants.

More losses in the coming days?

In addition, he also expects a major sell-off in the crypto community and continues his discussion with:

The crypto market momentum has stalled in the first quarter, threatening another reversal that may drop below $ 25,000.

Tags: bitcoin, china, stocks

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