Bitcoin Takes A Huge Drop in the Market

Bitcoin fell below $30,000 for the first time since Jun. 22 dragging other digital coins lower. This is happening for the first time and it is definitely something that people should be aware of.

About $98 billion was wiped off the entire cryptocurrency market in 24 hours as of 12:29 a.m. ET on Tuesday, according to CoinMarketCap data. Bitcoin was down more than 6% while ether fell nearly 9% and XRP tanked almost 10%, according to CoinDesk data.

Bitcoin Takes A Huge Drop In The Market

“There’s been a broad sell-off in global markets, risk assets are down across the board,” Annabelle Huang, partner at cryptocurrency financial services firm Amber Group, said.

There are “concerns of the quality and strength of economic recovery” and “broader risk assets turned weaker including high yields,” Huang said. “Coupled with recent BTC (bitcoin) weakness, this just sent crypto market down further.”

“All signals are red as BTC (bitcoin) continues to be weighed down by China’s ultimate crypto ban and worsening macro economic conditions from a surge in covid variants,” said Jehan Chu, founder of cryptocurrency-focused venture capital and trading firm Kenetic Capital.

Binance, the world’s largest cryptocurrency exchange, last month was barred by U.K. authorities from carrying out any regulated activities in the country. Regulators in Japan, Canada and Thailand have also issued warnings about Binance.

“In general we’re seeing more regulatory focus on crypto and bitcoin,” said Vijay Ayyar, head of business development at cryptocurrency exchange Luno.

“I would see bitcoin between 20-40K ($20,000 to $40,000) for a while now before any bullishness returns,” Ayyar said.

Kinetic Capital’s Chu also sees potential selling ahead.

“Q1′s crypto market momentum has stalled and is threatening further reversal potentially below the $25K levels,” Chu said.