Bitcoin Hits the Lowest Value Ever! Is it Time for Investors to Step Back?
The lowest hit of Bitcoin might be an indicator for the investors to take a pause and rethink their strategies.
Bitcoin continued to slide after a broader stock sell-off in the U.S. last week that sent the cryptocurrency market into a frenzy and prompted the cryptocurrency to plummet by roughly 10%. By market value, it was down 5% to US$32,860.91 at around 7:12 a.m. ET, according to data from Coindesk. Bitcoin hit an intra-day low of US$32,650.02, its lowest level since July 2021. The virtual currency has been trading in a narrow range this year as it attempts to reclaim its highs of late 2021. It is now down more than 50% from its peak price of US$68,990.90 in November 2021. The drop comes after the blue-chip Dow Jones Industrial Average lost more than 1,000 points on Thursday and Nasdaq plunged by 5%. Those losses marked the worst single-day drops since 2020. The Dow and Nasdaq fell again on Friday. The stock market rallied after Fed chair Jerome Powell said a larger rate hike of 75 basis points isn’t being considered. But by Thursday, investors had erased the Fed rally’s gains. “Overall markets remain under pressure from inflation and growth fears,” Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno said in a report. He also said that if Bitcoin falls below US$30,000, it could even drop further to US$25,000 before any “significant” move back up.
The Overall Condition of Cryptocurrencies
The global market cap for cryptocurrencies was at US$1.68 trillion on Sunday, according to data from CoinGecko.com, and cryptocurrency trading volume on the last day was at US$119 billion. Crypto investors were also on edge over the weekend after the TerraUSD stablecoin briefly lost its dollar peg. According to market experts. The recent crypto slide is strictly based on the tech share-led sell-off and not fundamentals for the crypto-verse. Bearish momentum could take Bitcoin towards the US$28,500 level, but that might start to be where some long-term bets come into play. The long-term fundamentals remain in place for Bitcoin, but a return to record highs will take a long time. Bitcoin will start to stabilize when the bloodbath on Wall Street ends and right now many investors are still in panic-selling mode.
