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Thursday, March 23, 2023

Bitcoin’s Price Plunges More than 56% from its Record High

Bitcoin fell below the $30,000 mark, breaking a symbolic price barrier. At its lowest point, the biggest and most popular cryptocurrency was down more than 12% on the day and more than 56% from its all-time high of about $69,000 in November. According to Coin Metrics data, it regained some of its losses and was trading at $31,181.28 as of 10:38 p.m. ET Monday.

Bitcoin and other cryptocurrencies are notorious for their wild price volatility. For years, individual investors dominated the market, but institutional investors, such as hedge funds and money managers, have begun to take control. The market has become more aligned with regular markets as more professional investors trade crypto.

Many institutional investors that purchase cryptocurrencies see them as high-risk investments, analogous to technology stocks. During periods of market turmoil, investors tend to flee to safer areas. The last time bitcoin fell below $30,000 was in July 2021, when the digital currency fell to $29,839.80. To avoid further worsening of technical sentiment, Yuya Hasegawa, a crypto market analyst at Japanese bitcoin exchange Bitbank, recently disclosed that bitcoin would need to sustain a crucial psychological price level of $33,000.

Furthermore, the price drop is part of a larger, multi-day sell-off that has engulfed most of the cryptocurrency and stock markets. According to CoinMarketCap data, the crypto market, which trades 24 hours a day, has dropped roughly 10% in the last 24 hours. However, all three major market indexes fell on Monday, with the S&P 500 hitting its lowest level in over a year.

Since Thursday, when the Dow Jones Industrial Average and the Nasdaq Composite both experienced their biggest single-day drops since 2020, stocks have been steadily declining. On the other hand, Ethereum which is the second-largest cryptocurrency, plunged to $2,286.10, almost 10% below the price Sunday evening.

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