Bitcoin takes a beating at $27K as the crypto economy moves just above $1 trillion
The global cryptocurrency market was on track for another decline on Saturday as Bitcoin and other top cryptocurrencies took a major hit throughout the day.
The $1.19 trillion crypto industry is currently worth less than it was last July. In the past week, most of the prominent cryptocurrencies, including Bitcoin, Cardano, Ethereum, Solana and others, have increased their losses against the US dollar.
Overall, the leading cryptocurrencies have lost between half and 80% of their price spikes at some point.
BTC price fell below $30,000 on Saturday after the release of a critical inflation report on Friday, which showed little indication that the price declines will slow down any time soon.
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Bitcoin collapses to $27K
At the time of 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 happened after the world’s largest cryptocurrency held steady at $30,000 for two days.
The dominant cryptocurrency has been trading in a narrow range for weeks as crypto and stock markets struggled to recoup significant upward momentum after a month-long sell-off.
Analysts also point to the ongoing conflict in Ukraine and concerns about a tightening of monetary policy by the US central bank as reasons for the decline in stock and cryptocurrency values.
BTC total market cap at $523 billion on the weekend chart | Source: TradingView.com
Darshan Bathija, CEO and co-founder of Vauld, explains:
“We are witnessing frequent short-term spikes in volatility as market participants trade within a narrow range due to uncertainty about the crypto market’s response to macroeconomic conditions.”
Currently, the cryptocurrency market has lost 6.1% in the last day alone. This number is below the lows in July 2021, when the market cap reached $1.32 trillion. The entire crypto economy hasn’t been priced this low since the first week of February 2021.
Bitcoin fell to a two-week low on June 11 as bears closed out the week’s trading on Wall Street.
‘Significant rebound’ ahead
The BTC/USD pair coincided with equity markets on Friday, ending the week with a hefty loss – the S&P 500 and Nasdaq Composite both fell 3% and 3%, respectively.
Meanwhile, despite the negative reports, investors can anticipate a “substantial rebound” in the fourth quarter of this year for bitcoin’s USD value.
According to Nigel Green, CEO and founder of deVere Group, Bitcoin is strongly associated with global stock markets and is close to a bottom for everyone.
“I believe we will soon see a bull run that will lead to a significant increase in the fourth quarter of the year for the world’s leading digital currencies,” said Green.
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Featured image from Inc Magazine, chart from TradingView.com