Bitcoin drops 6% to again trade below $30,000 as selloff resumes

Finance

A bystander uses a Bitcoin ATM in San Salvador, El Salvador, on May 16, 2022.
Alex Pena | Anadolu Agency | Getty Images

Bitcoin fell below $30,000 again Tuesday as the cryptocurrency’s recent selloff resumed.

The largest cryptocurrency by market cap slumped more than 6% to $29,434, according to Coinbase. Bitcoin had gained more than 4% to trade above $31,000 in the previous session. Ether dropped 6.6% to around $1,737 Tuesday.

Loading chart…

Bitcoin has lost more than half of its value from an all-time high of $68,982 reached in November. The digital token had suffered eight straight weeks of losses and dropped below $30,000 last month after the Terra collapse.

Cryptocurrencies have been moving in lockstep with equities, which have had a rough year amid fears of rising rates, surging inflation and the risk of a slower economy or outright recession. The S&P 500 has fallen more than 13% in 2022, while the tech-heavy Nasdaq Composite has been hit harder, down 23% this year.

“BTC’s increased correlation with equity, stagnated transactions growth … and the emergence of ETH as a store of value rival could weaken BTC’s dominance,” Bernstein analyst Gautam Chhugani, said in a recent note.

Still, some on Wall Street see a rebound in bitcoin on the horizon. JPMorgan’s Nikolaos Panigirtzoglou said last month that he sees about 30% upside for bitcoin after the recent washout.

Articles You May Like

Breaking Down Micron Stock Ahead of Earnings
Consumer sentiment survey followed by the Fed shows inflation expectations ease slightly
Stock futures rise after the major averages dip, investors mull recession concern
NIKE Q4 Earnings Preview: 8th Consecutive EPS Beat in Store?
Penske Automotive Group (PAG) and Bath & Kornit Digital (KRNT): 6/22/2022 Bull & Bear