Bitcoin Drops to $26,000 as Crypto Selloff Continues – Will the Slide Approach $25,000?
Bitcoin has been losing value for months due to, among other market variables, tight liquidity conditions and targeted dumping of high-beta tech stocks.
Since the global financial crisis of 2008, low interest rates have driven stock market valuations to extraordinary levels. Today, according to analysts, the decade-long bubble has burst and assets are coming back to reality.
Bitcoin fell to its lowest level in 16 months on Thursday, prompting a flight from risky assets such as tech stocks, while the collapse of TerraUSD, one of the so-called stablecoins, highlighted the pressure on crypto markets. .
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Ether, the world’s second largest cryptocurrency, lost more than 10% of its value on Thursday, hitting $1,833 for the first time since July last year.
Bitcoin (BTC) dipped below the $27,000 mark as the cryptocurrency market sell-off continues. In November 2012, it reached an all-time high of $69,000.
Bitcoin fell to a 16-month low on Thursday (Fast Company).
Table of Contents:
- Bitcoin down…down
- investors are scared
- Coinbase Stocks Boosted by BTC Crash
The price of the world’s largest cryptocurrency fell to $26,970, marking its lowest level since December 28, 2020. BTC has lost a third of its value, or $13,000, in the last eight sessions.
The Bitcoin price has fallen 7% in the last 24 hours and is currently trading at the bottom of its 12-month price range. Similar to Jan 24 this year and May 20 last year, its Relative Strength Index (RSI) on the daily chart is severely oversold.
However, in the event of a drop, oversold conditions may persist for a few weeks before prices resume. Currently, a relief rally may be short-lived, especially in light of last week’s significant drop below $35,000.
investors are scared
After the US Bureau of Labor Statistics revealed that consumer prices rose 8.4% in April, slightly more than expected by economists surveyed by Dow Jones, cryptocurrencies fell along with stocks.
This stock market crash spooked investors, leading them to liquidate risky assets like cryptocurrencies. The correlation between cryptocurrencies and the S&P 500, and more recently the tech-heavy Nasdaq Composite, remains significant.
Investor Michael Rinko of AscendEx said that the cryptocurrency industry has been under pressure for some time.
“The Federal Reserve continues to raise interest rates, which means stocks continue to fall and cryptocurrencies continue to fall as well. In the general market, this has caused a lot of anxiety,” Rinko said.
Total BTC Market Cap at $501 Billion on Daily Chart | Source: TradingView.com
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Coinbase Stocks Boosted by BTC Crash
Meanwhile, the bitcoin carnage is having a significant impact on Coinbase.
The crypto brokerage reported a first-quarter loss and a 28% year-over-year decline in revenue, falling short of Wall Street expectations. On Wednesday, shares of Coinbase fell by more than a quarter and hit an all-time low.
In the last week alone, the company’s shares have lost more than 50% of their value. Currently, its shares are down more than 75% year-to-date and are trading more than 85% below their November peak price.
Featured image from DataDrivenInvestor, chart from TradingView.com
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