Bitcoin Price Drops Below $ 30,000 – Why Is Crypto Crashing? Latest Bitcoin, Dogecoin, and Ethereum news and prices
For the second time in a month, Bitcoin has now fallen below the $ 30,000 mark that cryptocurrency market insiders and traders previously warned that it could open the door to new lows in cryptocurrency value.
The most recent decline, with Bitcoin plummeting at least 5% in the past 24 hours (July 20), comes amid warnings that ongoing global crackdowns on cryptocurrency mining operations and global trading could continue to plague the market with greater instability .
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Bitcoin’s recent slump to values below its $ 30,000 mark has spread across the market, with prices of other major cryptocurrencies like Ethereum, Cardano, Dogecoin and even stablecoins like Tether also falling today.
Bitcoin Price Drops Below $ 30,000 – Why Is Crypto Crashing? Latest Bitcoin, Dogecoin, and Ethereum News and Prices (Photo credit: Pexels)
Here’s what you need to know about this recent crypto crash, how much big coins like Bitcoin, Ethereum, Dogecoin are worth after the fall and why it seems to be happening.
What is Bitcoin currently worth?
At 12 noon on Tuesday, July 20, the price of Bitcoin hovered around $ 29,789 – after hitting a new July low of $ 29,368 just before 11 a.m., according to CoinDesk.
As a result, Bitcoin is down about 5% in the past 24 hours and has lost nearly $ 4,000 in value since last Tuesday (July 13th).
Previously, when Bitcoin slumped on Thursday, July 8th, the cryptocurrency was at $ 32,285.
Bitcoin’s first shock slump came last month on Tuesday, June 22nd, when the value of the coin fell to a new low of $ 28,814.75 that afternoon after hitting the $ 30,000 line.
Since then, the currency has rallied and trended back up, but its price remained in the low to mid-range of $ 30,000.
The most recent slump had nearly halved its highest-to-date figure this year from $ 64,000 in May, with experts warning in late June that the drop to below $ 30,000 could lead to a sharp spike in sales and more people refusing to to make “hodl”. their positions.
Ethereum prices were also down today – with the coin typically moving in parallel with Bitcoin to fall over 6% in price when it hit $ 1,723.78 at 10:59 a.m. on Tuesday (July 20).
Ethereum, a popular cryptocurrency synonymous with the rising crypto trend of NFTs, posted a 24-hour high of $ 1,870.07 this afternoon – well below its usual $ 2,000 threshold and its all-time high of $ 4,382.73 in the Cryptocurrency boom in May.
The hype surrounding the popular Memecoin Dogecoin has continued to show falling values, struggling to bolster hopes of hitting a highly anticipated $ 1 threshold, the closest the coin came to in April when its price rose to $ 0.683796 .
Dogecoin’s recent slump has apparently continued, with the price dropping to its lowest level in three months today, hitting $ 0.175495 this morning and hitting a 24-hour low of $ 16,0001 at 12pm today.
Why have crypto prices dropped?
The decline comes amid a growing crackdown on cryptocurrencies in China, where authorities in southwest Sichuan Province ordered the shutdown of bitcoin mining projects.
The State Council, China’s cabinet, recently promised to tackle mining and trade as part of a series of financial risk control measures.
While data on mining is scarce, bitcoin production in China accounted for about 65% of global production last year, according to the University of Cambridge.
Sichuan is the second largest producer.
“(The) crackdown on Chinese miners could mean dumping coins into a thin market and taking us deeper,” said Ben Sebley of London-based crypto firm BCB Group.
China’s central bank said it recently summoned some banks and payment institutions, telling them to crack down on cryptocurrency trading.
The Agricultural Bank of China (AgBank), China’s third largest lender by assets, separately said it was following People’s Bank of China instructions and would conduct due diligence on its clients to uncover illegal activities related to crypto mining and transactions .
Companies that mine Bitcoin – an energy-intensive process – typically hold large holdings of the cryptocurrency, with any move to sell large quantities pushing prices down.
After the move, countries like South Korea also pledged to tackle the surge in money laundering via cryptocurrencies, while the Metropolitan Police announced that they had successfully completed a huge UK cryptocurrency money laundering operation.
On July 13, the Met stated that special investigators had carried out the largest seizure of cryptocurrencies in the UK to date and one of the largest seizures in the world, seizing a whopping £ 180 million worth of cryptocurrencies.
In turn, cryptocurrency exchanges like Binance have felt the heat around the world as regulators and governments have begun to closely monitor the operation of such platforms following the global crackdown on cryptos.
Binance UK: GBP withdrawals suspended after FCA ban and cryptocurrency crackdown …
What is crypto mining?
Cryptocurrency mining describes the process by which Bitcoin or similar coins such as Ethereum, Tether or Dogecoin are given to users as a reward for solving math puzzles to check and validate “blocks” of transactions.
These are then added to a blockchain and help increase their value through clean, valid transactions, with the miners being rewarded for this with cryptocurrency.
As a decentralized network and form of currency, the lack of banks and infrastructure to authenticate transactions and exchanges means that mining is essential to the functioning and value of any cryptocurrency.
Government crackdown on the activity – especially in countries where there is a lot of mining – will therefore lead to a decline in the price and value of Bitcoin.
Additional coverage from Reuters journalists Tom Wilson, Kevin Buckland and Julien Ponthus