Run for the hills! Bitcoin tumbled for a fifth straight day, and dropped to nearly $30,000 in early Wednesday trading. It is changing hands for around $36,000 at the time of this writing.
The price of the largest cryptocurrency is now down more than 30% so far in May, and BTC is on track for its worst month since November 2018. This downturn is the most lethal in three years, and has triggered a full-flown retreat from the digital assets market.
Not to mention, around $8 billion in position liquidations due to margin calls after bullish leverage from the cryptocurrency derivatives market was shaken out.
Bitcoin futures account for almost 50% of the total market wide liquidations.
As recently as April, the price of the original cryptocurrency had hit an all-time high close to $65,000.
And although things had stalled for a while now, this slide was exacerbated by recent tweets from Tesla CEO Elon Musk who terminated the acceptance of Bitcoin as a form of payment at the electric car maker due to concerns about the environmental impact of BTC mining.
Nevertheless, indicators from price charts and blockchain data had been signaling a downturn recently, with analysts foreseeing a correction in the market.
And while Bitcoin shed a hefty weight in the past 24 hours, other top 10 coins have suffered equally big losses. Ether is down to $2,600, down 20.45%, while Ripple is at $1.17 after slipping by 24.73%. Even Dogecoin, which had hogged headlines these past few weeks, went down to $0.38, dipping 19.85%.
As for what’s next for Bitcoin, the correction could run out of steam soon, as technical indicators show oversold conditions.
Analysts, however, stand divided on whether the market has bottomed out. If there’s more action in store, then crypto prices could consolidate at further lows before finally moving higher.
Just another Wednesday in the wild world of crypto, eh?
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