Crypto Market Suffers $90 Billion Loss After Dow Jones Sees Worst Day Since October
Bitcoin’s cryptocurrency reign could be coming to an end after it fell below $30,000 this week.
The digital coin’s value began to drop dramatically last month and hit a low of $40,000, but it has now plummeted even further.
In light of Bitcoin’s demise, a staggering $89 billion was wiped off the entire cryptocurrency market in just the space of a day. As of yesterday, July 19, Bitcoin was down 5%, while Ether and XRP sank 6% and 9% respectively.
Despite these losses, the cryptocurrencies are still up this year; Bitcoin is 1.37% up, while both Ether and XRP are up around 135%, CNBC reports.
It’s believed Bitcoin’s plunge in value is due to a big sell-off in global stock markets. In light of this, on Monday, July 19, the Dow Jones Industrial Average had its worst day since October.
Annabelle Huang, partner at cryptocurrency financial services firm Amber Group, said:
There’s been a broad sell-off in global markets, risk assets are down across the board.
She added that there are ‘concerns of the quality and strength of economic recovery’ and ‘broader risk assets turned weaker including high yields.’
Huang further said this and Bitcoin’s recent downfall has ‘sent the crypto market down even further’.
As it stands, Bitcoin’s all-time high was recorded in April when it hit $65,000.
Marios Hadjikyriacos, senior investment analyst at XM, has blamed the ongoing pandemic for the market’s recent volatility. With COVID cases rising again, people are concerned that the economy will be badly effected.
He told The Guardian:
Worries that the rampaging Delta variant will hamstring the global recovery took a bite out of riskier assets on Monday. Markets seem to be coming to the realisation that the vaccines won’t be enough to completely obliterate the virus, as the mutations keep getting more resilient.
Many governments are also struggling with vaccine hesitancy, which is blocking the path towards herd immunity. Meanwhile, developing nations simply don’t have enough vaccines to escape the lockdown spiral. Add everything up and it looks like the pandemic might stick around for a long time.
As to what could happen next, Simon Peters, a cryptocurrency market analyst at online trading platform eToro, is still confident Bitcoin will bounce back.
He said, as per iNews, ‘Long-term confidence remains high with a recent survey of FinTech experts revealing more than half believe Bitcoin is capable of becoming the global reserve currency by 2050.’
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