Bitcoin has dropped by 13 per cent to $17,769.25 in the past 24 hours, the lowest level since December 2020 and there’s still a likelihood of dropping further in the coming hours or days.
Bitcoins have already lost more than 70 per cent of their value since peaking at $67,803.30 in November 2021 triggering a fresh wave of selling and deepening further the crisis in the digital currency sector.
“What we’re seeing is more liquidations driving prices and sentiment lower, which triggers more liquidations and negative sentiment some flushing-out needed still, but this will at some stage exhaust itself,” Noelle Acheson, head of market insights at Genesis, one of the largest and best-known lenders in the digital-assets space told Bloomberg.
The largest cryptocurrency Bitcoin (BTC) which acts as a benchmark for the broader crypto market plunged under $18,000 this Saturday to 13 per cent marking a record drop for the 12th consecutive daily decline. Altcoins were no exception, Cardona, Solana, Dogecoin and Polkadot recorded falls of between 9 per cent and 12 per cent on Saturday. Privacy tokens Monero and Zcash also fell by 11 per cent.
Since the pandemic days when the crypto market experienced a surge, the crypto market has sustained acute pressure to offer good returns mostly prompted by the massive stimulus efforts of central banks and even governments.
As of now, the total crypto market value has dropped below $1tn from $3.2tn. The price of ether has also dropped below $1000 taking its decline this year to more than 70 per cent.
As the price of bitcoin takes a sharp nosedive, Investors are anxiously watching its prices putting more pressure on the price and worsening the credit crunch. Small lenders have paused withdrawals.