The most popular cryptocurrency, bitcoin (BTC) dropped below the USD 30,000 threshold today, while altcoins bleed even more.
Last Tuesday, its price was c. USD 40,500. Since then, the price fell nearly 27% in a week, while in the last 24 hours, it’s down more than 9% – trading at USD 29,732 at 13:43 UTC.
It hasn’t been this low since early January.
Overall, BTC is down nearly 21% in a month, while it’s up 220% in a year. It’s also down 54% from its April 14 all-time high.
Alex Siman, founder at Subsocial, an open platform for decentralized social networks, described this fall in the price as “a small wonder.” The reason behind that, he said in an emailed comment, is that “the broader market resistance from the ongoing clampdown on crypto-related activities in China is no longer preventing crashes.”
“At this rate of fall, it’s difficult to predict the level at which the price will form a baseline for an imminent rebound, as big investors with the potential to reverse prices are choosing to watch from the sideline. While we can still see a positive dynamic before the end of this year, to me, steeper plunges to [USD] 20,000 won’t come as a surprise either.”
Also, fintech app Yield App CEO, Tim Frost, said that we may be reaching “an inflection point” with regulators and crypto, adding that many seem to have “finally realized how powerful and popular this asset class is.” Still, instead of trying to understand and regulate it effectively with forward-thinking policies, Frost said, “they are reacting in fear with bans.”
“This, added to the general downward sentiment, seems to be indicating a full-on bear market from here. Sensible investors would do well to find a solid passive income opportunity for their crypto while they sit back and ride out the storm,” he said.
Meanwhile, analytics firm Coin Metric stated today that the amount of BTC held on major crypto exchange Binance has climbed to new highs over the last month.
“There’s now over 570K BTC held on Binance, far more than any other exchange in our coverage. Although there are many factors at play, the increase is likely at least partially caused by investors moving their BTC off of Chinese exchanges and on to Binance, which is not officially headquartered in mainland China,” they said.
Matt Maley, Chief Market Strategist for Miller Tabak + Co., told Bloomberg that any meaningful break below USD 30,000 will make “a lot of momentum players to throw in the towel,” so “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.”
Alts are down a lot more than BTC and like in 2017-18 many may not recover. BTC will be the first to set new all ti… https://t.co/EptsoldwW1
— Marc van der Chijs (@marcvanderchijs)
@Crypt0Dr0g0n @inversebrah Institutional narrative didn’t play out (nobody bought except for Tesla and MicroStrat),… https://t.co/o8o4Xn0uDf
— ∞ CO฿IE (@CryptoCobain)
Investors who sell on China “bans” usually end up bummed… https://t.co/OKlBe9yU9q
— Dan Morehead (@dan_pantera)
Additional perspective how key the current price action may be: #Bitcoin also just tagging the weekly 50MA which ha… https://t.co/wljcAQf67F
— Sven Henrich (@NorthmanTrader)
My theory is that someone has big put options right now on #bitcoin and #ethereum and has been using sell walls on… https://t.co/zOIbwMduj7
— Jacob Canfield (@JacobCanfield)
Not a single indicator can’t tell the future for sure. Anything can happen in the crypto market.
— Ki Young Ju 주기영 (@ki_young_ju)
Just an observation: BTC now unchanged on the year (YTD=0%). For ETH to match, it would have to go to $737.
— Ari Paul ⛓️ (@AriDavidPaul)
In bull runs, people tend to extrapolate and make rosy projections, buy into exuberant narratives, and expect statu… https://t.co/NR9AY3xQ8f
— Jason Choi (@mrjasonchoi)
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(Updated at 14:17 UTC with more insights.)