Virtual currency representations In this illustration from May 19, 2021, Bitcoin is displayed in front of a stock graph.
Bitcoin has dropped below $30,000 for the first time since June 22, bringing other digital currencies down with it.
According to CoinMarketCap data, the whole cryptocurrency market has lost around $98 billion in 24 hours as of 12:29 a.m. ET on Tuesday.
According to CoinDesk data, bitcoin was down more than 6%, while ether was down almost 9% and XRP was down over 10%.
“Global markets have seen a broad sell-off, and risk assets are down across the board,” said Annabelle Huang, a partner at bitcoin financial services business Amber Group.
“There are doubts about the quality and strength of the economic recovery,” Huang said, adding that “broader risk assets have turned weaker, particularly high yields.” “This, combined with recent BTC (bitcoin) weakness, has pushed the crypto market farther down.”
Is There More Selling to Come?
According to Ayyar, Bitcoin’s drop below $30,000 might be significant, and the sell-off could go even lower to test the $22,000 to $24,000 mark.
After that, bitcoin may trade in a range.
“I think bitcoin will stay between $20K and $40K for a while before any bullishness emerges,” Ayyar added.