Leading global cryptocurrency, Bitcoin, plunged to its lowest level since January on Tuesday, extending a price drop that has wiped out more than $1.3 trillion in market value for the broader crypto complex since a peak in May.
As at 2.25pm Nigerian time, Bitcoin had lost a lot -8.71 percent and was changing hands at $29,605.21on leading crypto trading platform, Binance.
Other cryptos followed familiar pattern as is always the case when Bitcoin price heads south.
Etherum lost over 9% is currently hovering around $1766.38, while Binance Coin, BNB, lost a whooping 21% and trading around $236.70
For Bitcoin, it’s the lowest price and first breach of the psychologically significant value at $30,000 since January, according to Dow Jones Market Data. Bitcoin is down 54% from its mid-April peak, paring its year-to-date gain to 4.4%.
“Bitcoin has violated an important support level and it is likely that we may see more panic in the market as investors will think that it may be the end of Bitcoin,” wrote Naeem Aslam, chief market analyst at AvaTrade in a Tuesday note.
“But investors should remember that Bitcoin is a kind of asset which has fought many similar pessimistic views many times. The current sell off could be the opportunity for many investors to load their portfolio with Bitcoin which is selling at a huge discount,” the analyst wrote, according to Market Watch.
The decline for the crypto has been attributed to regulatory action by China, where regulators have imposed restrictions on digital mining and trading of crypto in the People’s Republic.
Crypto’s price correction, according to Market Watch, also comes as traditional markets are trying to recover from a brutal selloff last week. The Dow Jones Industrial Average DJIA, +1.76%, the S&P 500 index SPX, +1.40% and the Nasdaq Composite Index COMP, +0.79% saw a powerful rebound from last week’s slide on Monday as digital assets sank, leading some analysts to speculate that bitcoin might be experiencing a rotation out of the crypto and into equities.