Bitcoin Price Suddenly Plummets Drastically
Bitcoin’s price has dropped dramatically, with the crypto market believed to be in ‘freefall’.
The cryptocurrency is currently valued at $29,482, just one week after trading at more than $40,000. Since its all-time peak of nearly $65,000 in April, Bitcoin has lost more than 50%.
The losses have been mirrored by the likes of Ethereum, Cardano and Dogecoin, the latter of which dropped almost 20% over the recent weekend. In just a week, more than half a trillion dollars have been wiped off the crypto market, bringing a cold sweat down the backs of investors.
The drops come amid China’s crackdown on banks supporting digital currency transactions – a huge blow as it was formerly one of the world’s most significant crypto markets, now wary of its unregulated nature and sparking a mass sell-off.
‘Relevant departments of the People’s Bank of China pointed out that the hype on virtual currency transactions has disturbed the normal economic and financial order, created the risk of illegal cross-border asset transfer, money laundering and other illegal and criminal activities, and seriously infringed upon the property safety of the people,’ the bank’s statement reads.
Nicholas Cawley, from trading analysis firm DailyFX, told The Independent the market is in ‘freefall with support levels broken with ease… the latest Chinese mining ban is fuelling the move lower but the overall market tone is very negative with little reason to buy the market.’
‘It’s a guessing game at the moment – will bitcoin be up or down $10k in a month’s time – no-one knows and those who tell you they do know, don’t. We have seen these moves before, and will likely see them again. If you believe in cryptos, and are a holder, your exit strategy has just been pushed further into the distance,’ he added.
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