On Saturday, the global cryptocurrency market was on track for another downturn as bitcoin and other popular cryptocurrencies were hit hard during the day.
The $1.19 trillion crypto industry is currently worth less than it was last July. Last week, most of the well-known cryptocurrencies, including Bitcoin, Cardano, Ethereum, Solana and others, increased their losses against the US dollar.
In general, the leading cryptocurrencies lost from half to 80% of their historical price peaks.
The price of BTC fell below $30,000 on Saturday following the release of a critical inflation report on Friday that offered little indication that the price drop will start to cool off soon.
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Bitcoin crashed to $27,000
As of this writing, Bitcoin (BTC) is taking a beating and is trading at $27,560.18, down 7.8% over the past seven days, data from Coingecko shows. This came after the world’s largest cryptocurrency remained stable at $30,000 for two days.
The dominant cryptocurrency has been trading in a tight range for several weeks as crypto and equity markets struggled to offset significant upward momentum after a month-long sell-off.
Analysts also point to the ongoing conflict in Ukraine and fears of tightening monetary policy by the US central bank as reasons for the decline in the value of stocks and cryptocurrencies.
BTC total market cap at $523 billion on the weekend chart | Source: TradingView.com
Darshan Batija, CEO and co-founder of Vauld, explains:
“We are seeing frequent short-term bursts of volatility because market participants are trading in a limited range due to uncertainty about the reaction of the cryptocurrency market to macro conditions.”
Currently, the cryptocurrency market has lost 6.1% in the last 24 hours alone. This number is below the lows recorded in July 2021, when the market capitalization reached $1.32 trillion. The entire crypto economy has not been priced this low since the first week of February 2021.
Bitcoin fell to a two-week low on June 11 as the bears ended the week of trading on Wall Street.
“Significant rebound” ahead
The BTC/USD pair fell in tandem with the stock markets on Friday, ending the week with huge losses, with the S&P 500 and Nasdaq Composite down 3% and 3% respectively.
Meanwhile, despite the negative reports, investors can expect a “substantial recovery” in the value of bitcoin in the fourth quarter of this year in US dollars.
According to Nigel Green, CEO and founder of the deVere Group, bitcoin is closely linked to global stock markets and the bottom is near for everyone.
“I believe we will soon see a bull run leading to a significant Q4 rebound for the world’s leading digital currency,” Greene said.
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Featured image from Inc Magazine, chart from TradingView.com
Credit : www.newsbtc.com