Bitcoin has fallen below $30,000 for the second time in a month. This time, the bearish calls for further drops are getting louder.
Bitcoin and other digital currencies tumbled alongside global stock markets yesterday. That wiped $85 billion worth of the entire crypto market in the span of 24 hours from 5 a.m. EST today. Bitcoin fell as much as 7%; Ether and Dogecoin were down about 7%; and Binance coin fell a solid 12%, prompting some traders to prepare for even deeper price drops.
The last time Bitcoin fell below $30,000 was on June 22. The king of cryptocurrencies is now trading 37% below the 100-day moving average, and it is now more than 50% below its mid-April high of nearly $65,000.
Bitcoin is currently hovering around $29,500, but market watchers say it could drop to around $22,000. “I expect a strong dip towards $22K,” Patrick Heusser, head of trading at Crypto Finance AG, said in a Telegram interview on Monday. Fund manager Jeffrey Gundlach said: something similar late last week before the latest crypto sale.
Meanwhile, the options market saw increased demand for out-of-money or low-strike put options priced at $22,000 and $20,000.
The latest digital currency plunge comes as US futures recovery from a tough Monday session.
The Crypto Fear & Greed Index– which reflects mood among market participants by measuring cash and stock allocations against market ups and downs – placed Bitcoin in the “extreme fear” category at 19/100, along with the traditional markets, which are also in the “extreme fear” category. “zone.
But so far the returns on Bitcoin underperforming stocks, with the S&P 500 up 15% YTD, while BTC is running about 5% higher YTD.
Bitcoin investment volumes have also fallen to just 38% of the annual average for the past week.
This comes at a time when China has been forced to shut down operations on Bitcoin mining due to its energy-intensive nature. China’s central bank has also demanded that financial and fintech firms not offer crypto-related services to customers, a move that started its latest downturn a month ago.
This story was originally on Fortune.com