Bitcoin falls to its lowest price since July 2021
Bitcoin’s current price is down substantially from its all-time high of $69,000 achieved last November.
To give you an idea of how drastic this drop is, back in November of 2021, Bitcoin’s price rallied at around $68,990. That’s almost a 50% drop compared to today’s price. Yikes.
What caused the sudden drop? Well, it could be a few things. For starters, stock markets could have something to do with it. For example, the Dow Jones Industrial Average lost more than 1,000 points on Thursday, and the Nasdaq plunged by 5%.
Sure, stock and crypto markets are two separate entities, but investors who trade stocks could potentially own Bitcoin as well, and selling volatile assets such as cryptocurrencies could help them bear the brunt of their losses in the stock market.
“Cryptos have been tending to trend recently with the stock market,” Michael Oliver tells CBS News, chief analyst at Momentum Structural Analysis.
In the coming weeks, analysts warn that Bitcoin could fall as low as $30,000 or $25,000 before climbing back up towards the end of the year.
“Bitcoin is really stuck in a sideways news cycle where you’re just waiting for it to be calm on Wall Street and then you’ll see more people confident in investing,” says Oliver. “I still think there’s a lot of long-term potential value here, but you have to be able to stomach this volatility.”
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