Bitcoin drops below $30K and leaves the crypto market in stress. After performing impressively well for the past few months, Bitcoin is facing some major correction. It is the second time the largest cryptocurrency has plunged below $30K after reaching the new all-time high above $42K. The analysts are predicting that this recent drop below $30k might lead to further losses for Bitcoin in the near-term.
Craig Erlam, a market analyst, has said:
“This level looks very vulnerable and a break below it is bad news in the near-term for Bitcoin and cryptos in general.”
Erlam has also claimed that Bitcoin might also drop to $20k and it won’t be surprising for anyone in the industry. Since December 2020, Bitcoin's price has doubled from its price of $20k. Bitcoin was again leading to its all-time high after facing a major correction, but it again plunged back to the $30K level. It seems that the bull rally might face a break for some time as the predictions are indicating a further drop.
In the past few months, it has been seen that people are getting quite confident of Bitcoin and are investing a large sum of money into it. It is also believed that the major reason behind the surge in Bitcoin price was due to the huge interest from the institutional investors. However, a lot of people believe that this is completely speculative and cannot be trusted because of its volatility.
The critics are backing up their claims as Bitcoin drops below $30k. This is showing the extent of the volatility of the asset. Despite this, the investors don't seem to care much as the market is still showing some bullish signs. Investors are hoping that Bitcoin price will again rise back to its new all-time high.