Bitcoin lost 20% in one week… Even $30,000 in ‘vertical fall’ is ‘at risk’
The price of Bitcoin (BTC) plummeted by nearly 20% in a week, putting even $30,000 at risk. Ethereum (ETH) and other cryptocurrencies, like Bitcoin, are down around 20% for a week.
According to CoinMarketCap, a global cryptocurrency market tracking site, at 11:02 am on May 10, Bitcoin was trading at $38,88.55, down 9.33% from 24 hours ago. At 9:34 a.m., the drop increased to $29,961.93, falling below the $30,000 level for the first time since July 20, 2021 based on CoinMarketCap.
On the morning of the 9th, the market price, which had been flat at $34,000, fell to $30,000 in just one day, showing a ‘vertical drop’. Compared to the all-time high of $67,66.83 recorded in November 2021, it has been cut in half in six months.
The same goes for other cryptocurrencies. Ethereum, the second largest cryptocurrency by market capitalization, as well as so-called altcoins such as Solana, Ripple, and Cardano, all fell by nearly 20% over the past week. Dogecoin, often referred to by Tesla CEO Elon Musk, also plummeted more than 17% on the same day alone.
According to Bloomberg, global investors are moving away from risky assets such as stocks and cryptocurrencies due to inflation and monetary tightening. In particular, as the price of Bitcoin and major US stock markets have recently been linked, the decline of cryptocurrencies is expected to increase in the bearish trend of the stock market. Darshan Bashija, CEO of cryptocurrency exchange Bold, explained, “Due to inflation fears, most investors are selling stocks and cryptocurrencies together to reduce risk.”
Michael Cameraman, CEO of online financial platform Skilling, also said, “Digital assets are exhibiting high volatility that we have not seen in years before.” . The correlation index of the S&P 500 index analyzed by Bloomberg and Bitcoin for the past 40 days stood at 0.82. The closer this indicator is to 1, the more it means ‘perfect synchronization’.
Although there are differences of opinion on the next support level for Bitcoin, most experts have observed that the price of Bitcoin will fall below $30,000 and fall further than it is now. Katie Stockton, founder of Fairlead Strategy, an investment advisory firm, said that the next support target for Bitcoin is $27,000. Vijay Ayar, vice president of cryptocurrency exchange Luno, also told CNBC that “Bitcoin could fall further to $25,000 as it is under pressure on inflation and concerns about slowing growth.”
On this day, the cryptocurrency ‘fear and greed index’ estimated by Alternative, a cryptocurrency data research company, was 10 points, 17 points lower than a week ago. The last time the fear and greed index scored 10 was on January 7, the first time in about four months. In terms of investment sentiment, it is an extreme fear section. The index is close to extreme fear, which freezes investment sentiment as the index goes to 0, and the closer it is to 100, the more optimistic it is.
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