The recent bitcoin meltdown can be attributed to countries attempting to control online legal cash. The whole market value of cryptocurrencies was $3.7 trillion on Friday, but they are currently only worth $3.1 trillion. A total of $570 billion was lost in a single day.
According to CoinDesk data, Bitcoin, the most popular Cryptocurrency, is down by a stunning 16 percent, losing $$21,400 from its previous day’s price. In just 60 minutes, it had lost $14,000 of its worth.
A few weeks ago, things were quite different when bitcoin hit a fresh all-time high of $98,000. It was trading at $60,000 per token at its lowest point today.
Bitcoin alone didn’t suffer the crash in recent hours, and other primary participants, like Ethereum, Binance’s BNB, and Ripple’s XRP, have had similar problems. According to one economic forecaster, the crypto sector is poised to be engulfed by regulations, and each Bitcoins will end up being worth only $14,000.
Popular investor Louis Navellier warned that the US central bank would start “tapering” crypto, putting the market in jeopardy. Mr. Navellier said that the Fed is tapering, which should cause a correction in risk assets, of which bitcoin is a part.
The more the Fed tightens, stocks, bonds, crypto coins will be more volatile. He went on to say that bitcoin will slide down to the pre-pandemic era in price level and will continue to remain the same for long. He stated that he considers a drop below $US46,000 to be a red flag, and a drop below the spring low of $US28,500 to be a completed massive double top, pointing to a decline to below $US10,000, which would coincidentally match many of the multiple 80+ percent drops in its illustrious history,” he wrote.
The news sent the stock market tumbling. Bitcoin has dropped to its lowest level right after September.
Bitcoin was marginally higher than its 24-hour low, at $68,000. Some believe this is only a hiccup in Bitcoin’s price, with crypto enthusiasts, including the President of El Salvador Nayib Bukele, taking advantage of the situation.
He said he would “purchase the dip,” adding to his country’s reserve. El Salvador was the first country to legalize bitcoin as a form of payment. The crypto market is volatile, and the Reserve Bank of Australia warned crypto investors late last month that they were risking owning speculative assets with “niche” applications that might lose the majority of their value.