Bitcoin wipes out the gains of 2021. It is “the ultimate risky asset right now”.

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Bitcoin fell below $ 30,000 on Monday night for the first time in a month. The time of dreams

Bitcoin fell below $ 30,000 on Monday night for the first time in a month, wiping out almost all of its 2021 gain. Around 9 a.m., it was trading at $ 29,750, down 3% in the last 24 hours. Ether, the second most valuable cryptocurrency, also fell about 3% to $ 1,750.

Crypto was washed away with most of the other assets on Monday, and Bitcoin is trading more as risky security than the hedge that some proponents say it is. Oanda analyst Edward Moya calls Bitcoin the ultimate risky asset right now, warning that he could see intense selling pressure if Wall Street enters panic sell mode.

Bitcoin peaked above $ 64,000 on the day Coinbase Global (ticker: COIN) went public in April and has fallen since. It follows a familiar pattern, similar to its peak and crash at the end of 2017, when major exchange traders began listing Bitcoin futures by going up the hype cycle before a big announcement and then falling rapidly. thereafter.

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Bitcoin had soared in part due to the enthusiasm of retail investors, who were able to trade it on traditional payment and investment platforms such as PayPal Holdings (PYPL), Square (SQ) and Robinhood. Cryptocurrencies such as DogeCoin have also skyrocketed, but have since crashed. DogeCoin is now trading at 16 cents, down from highs above 70 cents earlier this year. Robinhood, which plans to go public next week, warned potential investors in a file released on Monday that cryptocurrency trading is likely to collapse in the third quarter and hurt its earnings.

Regulatory pressure on Bitcoin is increasing, with China warning financial institutions to stop selling cryptocurrencies and expelling miners from the country.

If Bitcoin falls below the $ 30,000 level, the dynamic sell could seek an easy test of the $ 28,900 level, Moya wrote on Monday. This could be the limit to defend a deeper plunge towards $ 25,000, which at this point would lead many sellers to consider the psychological level of $ 30,000.

Write to Avi Salzman at [email protected]

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