The price of BTC has gone below the sum of $30,000 for the first time since the 22nd of June- which brought down other cryptocurrencies. Almost $89 billion has been completely erased from the entire market of cryptocurrency in the last 24 hours as reported from data by CoinMarketCap. Incidentally, Bitcoin did go below 5% whereas other cryptocurrencies like Ethereum went down by 6% and XRP went down by 9%. Data from CoinDesk mention Bitcoin at an increase of 1.87% for the current year.
BTC On A Downward Spiral
This downward spiral of BTC does come directly after a big sell-off in the global markets. Last Monday saw the Dow Jones Industrial Average had its worst-ever opening day since last year. Annabelle Huang, one of the partners at Amber Group- one of the largest cryptocurrency financial services firms- has stated that there has been quite a big sell-off in the global markets where risk assets have gone way below throughout the board.
Huang further stated that there have been concerns regarding the strength as well as the quality of this supposed economic recovery.
The threat of a dubious economic recovery added to the downward spiral of BTC has definitely sent the entire crypto market toppling down. Interestingly, ever since Bitcoin hit its all-time high of $65,000 in April, the price of this cryptocurrency has gone down by 50%. This can definitely be attributed to a renewed crackdown by the Chinese Government on the trading of cryptocurrency.
This implies that most of the regions which are responsible for bitcoin mining have been forced to stop their operations.
It is pretty well known that BTC mining is a process that is quite energy-intensive that is useful for facilitating the transactions of Bitcoin as well as creating newer coins.