Bitcoin’s tumble amid a broad crypto crackdown from China has pushed it below US$30,000 for the first time since January, pulverizing its entire 2021 gain.
The original cryptocurrency has lost more than 50 per cent from its mid-April high of almost US$65,000. That compares with a gain of about 12 per cent for the S&P 500 since the end of December. The coin started 2021 trading around US$29,000 following a fourfold increase in 2020.
“Any meaningful break below US$30,000 is going to make a lot of momentum players to throw in the towel,” said Matt Maley, chief market strategist for Miller Tabak + Co. “Therefore, even if Bitcoin is going to change the world over the long-term, it does not mean it cannot fall back into the teens over the short-term.”
Bitcoin dropped as much as 12 per cent to US$28,824 on Tuesday, just below last year’s closing price of $28,997. Other cryptocurrencies were hit harder, with Dash tumbling 22 per cent, XRP falling 21 per cent and Litecoin stumbling 18 per cent. Among more volatile DeFi tokens, Prude was down 68 per cent and Manyswap tumbled 60 per cent, according to data on CoinMarketCap.com, while a handful of others showed losses of more than 80 per cent. Meanwhile, Coinbase Pro reported having issues trading Polkadot.
Chart-watchers said Bitcoin, which failed to retake US$40,000 last week, could have a tough time finding support in the US$20,000 range following its drop below US$30,000. Still, Bitcoin had prior to Tuesday breached US$30,000 during at least five separate instances this year but recuperated to trade above that level each time.
It’s a remarkable comedown for the digital asset which just weeks ago was trekking higher amid a warmer embrace from Wall Street as well as retail investors. But negative press about its energy use, brought on largely by Tesla Inc.’s Elon Musk, as well as a clampdown from China have pushed it lower in recent weeks.
China’s latest broadside came Monday, when the nation’s central bank said it had summoned officials from the biggest lenders as well as AliPay to reiterate a ban on cryptocurrency services. Chinese officials are already trying to root out crypto mining operations.
The US$30,000 support level for Bitcoin had held steady during a selloff last month that saw it wipe out roughly 35 per cent for the month of May. Meanwhile, a decline in Ether has pushed it near its support level of US$1,500. Should it breach that mark, Ether could also see a continued selloff.
Exuberant rallies and quick drawdowns are not uncommon for Bitcoin and other cryptocurrencies. Bitcoin underwent a renaissance in 2017, rising more than 1,000 per cent that year, only to lose roughly 75 per cent in the following year. And last year, it advanced 300 per cent.
“The most speculative part of the market is cryptocurrency,” said Eric Diton, president and managing director of The Wealth Alliance. “At the end of the day, what determines the value of Bitcoin is acceptance and more demand and supply. When you have a country like China come out against Bitcoin, that really hurts it’s global acceptance and that’s why you’re seeing the value deteriorate as much as it has.”
Bitcoin drops below US$30,000 for first time since January - Article - BNN
Read More
Tidak ada komentar:
Posting Komentar