Bitcoin Hits 10-Month Low Below $32,000

Bitcoin (BTC) took another tumble Monday following days of heightened volatility in the cryptocurrency market. Bitcoin, the world’s largest crypto by market cap, fell below $32,000 for the first time in 10 months. The volatile asset had last recorded its lowest price in July 2021. In January 2022, the digital currency fell as low as $32,970 from an all-time high of $68,990 recorded in November 2021.

Amid the unsteady climate, crypto market sentiment has been at a low for several weeks. The Crypto Fear & Greed Index, a popular indicator that measures confidence among crypto traders, is currently reading at “extreme fear.” The vast majority of crypto assets are heavily down year-to-date, a fact worsened by the Fed’s planned tapering and rate hikes due to following throughout this year.

According to CoinCu, the Bitcoin price dropped by 5% to $31,600 at 17:00 GMT. The fall isn’t exclusive to Bitcoin. Ethereum (ETH), the second-largest crypto, also fell by 5% from the start of the weekend to $2,450.

The latest tumble follows a rocky few days in the crypto and global markets. Per data from CoinCu, Bitcoin has fallen by 17.8% in the past week, Ethereum has lost 17.3% of its value, and many other lower cap assets have dropped harder. Though the whole crypto market has taken a beating since crossing a $3 trillion market cap in November, May has kicked off in a particularly bleak fashion for crypto’s famously steadfast “HODLers.”

However, the transaction volume of the flagship digital asset (according to its seven-day moving average) has just reached a seven-month high of 293,520.059 BTC, according to the data by on-chain metrics platform Glassnode, tweeted by its alert account glassnode alerts on May 9.

Despite showing signs of breaking out on May 4, when it surged 6% following the Federal Reserve’s move to raise interest rates by half a point, Bitcoin has since slumped dramatically, together with most digital assets – recording the market’s lowest results in over two months.

Besides Bitcoin and Ethereum, some of the biggest breakout stars of 2021 are down over 50% or more from their all-time highs. Solana (SOL), for example, is trading 73.8% off its peak at $68.2. Terra has lost just under half its market value in a month amid UST stability issues, and Dogecoin (DOGE) is 85% short of the high it reached this time last year.

MicroStrategy CEO Michael Saylor, who heads the world’s largest corporate investor in bitcoin, has joked that the latest price crash has caused him to lose his job at the software firm.

The company holds more than 120,000 BTC, worth roughly $4 billion at today’s prices, but despite the dip, Saylor is unlikely to sell any time soon.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News