Amid Market Selloff, Crypto Prices Drop Below $35,000

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Bitcoin, the world’s most valuable cryptocurrency, was once trading at an all-time high of nearly $70,000 last November. But in the past 24 hours, Bitcoin has plunged more than 8%, trading as low as $34,064.90.

Bitcoin’s recent drop in value has wiped out over $600 billion in market value, with over $1 trillion wiped from the global cryptocurrency market.

Bitcoin’s value has fallen by nearly a quarter since the start of the year, while the world’s second-largest cryptocurrency, Ethereum, has fallen by around 35%. This comes as Bitcoin and other major cryptocurrencies face a market selloff. Given the increasingly positive correlation between stock markets and cryptocurrencies, this week’s poor stock market performance – the worst since the start of the COVID-19 pandemic – led to a sell-off in major stocks, especially tech stocks.

Last week, the Dow Jones Industrial Average fell nearly 4% or 1,400 points. Similarly, the S&P 500 fell 5.1%, boosted by high inflation that will force the Fed to raise interest rates later this year.

“Crypto is, of course, vulnerable to these kinds of selloffs given its naturally higher volatility historically, but given the importance of market caps, volatility is worth considering both in terms of dollars gross and in percentage terms,” ​​analysts at Bespoke Investment Group told Bloomberg.

Since November, the value of Bitcoin has fallen by around 50%.

Bitcoin is likely to enter a bear market this year, according to a report from Huobi Research.

Over the next five years, Goldman Sachs predicts that Bitcoin’s price could easily surpass $100,000 due to its increasing displacement from gold in market share.

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