The global cryptocurrency market was on its way to another drop on Saturday, with Bitcoin and other cryptocurrencies taking a major hit throughout the day.
The $1.19 trillion crypto industry is currently worth less than it was in July of last year. In the past week, the majority of notable cryptocurrencies, including Bitcoin, Cardano, Ethereum, Solana, and others, extended their losses against the US dollar.
Overall, the leading cryptocurrencies have lost between half and 80% of their all-time highs.
Bitcoin plunged below $30,000 on Saturday after the release of an important inflation report on Friday, which showed few indications that the price drop will soon begin to subside.
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Bitcoin collapses to 27 thousand dollars
As of this writing, Bitcoin (BTC) has been battered and trading at $27,560.18, down 7.8% in the past seven days, according to Coingecko data. This happened after the world’s largest cryptocurrency held steady at $30,000 for two days.
The dominant cryptocurrency has been trading in a tight range for weeks, as the crypto and stock markets struggled to recover significant upward momentum after a month-long sell-off.
Analysts also point to the ongoing conflict in Ukraine and concerns about monetary policy tightening by the US central bank as reasons for the decline in the values of stocks and cryptocurrencies.
BTC total market cap at $523 billion on the weekend chart | Source: TradingView.com
Darshan Bateja, CEO and Co-Founder of Fuld explains:
“We are seeing frequent short-term spikes in volatility as market participants are trading within a confined range due to uncertainty about the crypto market’s response to macroeconomic conditions.”
Currently, the cryptocurrency market is losing 6.1% in the last day alone. That number is lower than 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 dropped to a two-week low on June 11 as bears wrapped up the week’s trading on Wall Street.
Ahead of us is a “big recovery”
The BTC/USD pair fell along with the stock markets on Friday, ending the week with a huge loss – the S&P 500 and Nasdaq Composite fell 3% and 3%, respectively.
Meanwhile, despite the negative reports, investors can expect a “significant recovery” in the last quarter of this year for the US dollar’s value of bitcoin.
According to Nigel Green, CEO and founder of deVere Group, Bitcoin is closely related to global stock markets, and the bottom is near for everyone.
“I think we will soon see a bullish rally that will lead to a major rebound in the last quarter of the year for the world’s leading digital currency,” Green said.
Featured image from Inc Magazine, chart from TradingView.com