Bitcoin breaches $30,000 mark, down 25% in just 6 days

Synopsis

While crypto enthusiasts view Bitcoin as a hedge against inflation, an influx of more traditional investors tend to view it as a riskier asset, particularly to its fall in tandem to the tech-heavy Nasdaq, leading to correlations between the two.

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Explore NowNew Delhi: The cryptocurrency market witnessed a bloodbath on Tuesday amid sinking global markets and diminishing risk appetite of investors. Following a 13 per cent decline, Bitcoin breached the $30,000 mark in the last 24 hours. It is the lowest level of the largest digital token since July 2021. It hit an intraday low of $29,944.80.

According to data from Coinmarketcap, Bitcoin has tumbled about 25 per cent in the last six days. The crypto behemoth has tanked about 60 per cent from its peak scaled in November 2021.

Market experts said rising inflationary worries, aggressive monetary tightening, looming recession fears, war crisis and geopolitical worries are denting sentiments for riskier assets such as cryptos.
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Shivam Thakral, CEO, BuyUcoin, said global financial markets are battered by rising inflation and growing geopolitical tension. The traditional and crypto markets are experiencing broader sell-offs due to macro-economic factors such as interest rate hike by central banks around the globe, he added.

WazirX Trade Desk said the Fear & Greed Index, gauging the market sentiments, has hit the lowest since the start of the year.

Decoding the technical levels, it said that the daily RSI fell below 25 for the first time in almost 4 months and the next immediate support for BTC is expected at $28,600.

While crypto enthusiasts view Bitcoin as a hedge against inflation, an influx of more traditional investors tend to view it as a riskier asset, particularly to its fall in tandem to the tech-heavy Nasdaq, leading to correlations between the two.

However, comparing the correlation between the two, Sathvik Vishwanath, Co-Founder & CEO of Unocoin, is still not convinced if it’s a bear market yet.

Crypto is generally volatile but this time this has got combined with a down trend in global markets including equity and commodity ones, Vishwanath said.

However, volumes have taken a number of experts by surprise. In the last 24 hours, Bitcoins worth more than $75 billion has exchanged hands.

The inflows marked a sharp turn after four consecutive weeks of outflows and market experts believe that investors are taking the advantage of the ongoing correction.

The total market capitalization of Bitcoin has slipped below $600 billion mark, which was around $1 trillion at the beginning of the year. However, its dominance in the crypto markets continues to remain around 42 per cent.

Altcoins are bleeding with even worse scars. Shiba Inu, Dogecoin, Ethereum, Solana and Avalanche were trading with cuts in mid teens. About 40 among the top 100 crypto tokens posted double-digit cuts.
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Updated: 05/10/2022 — 02:00

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