The cryptocurrency market today witnessed a plunge in the wake of Bitcoin prices falling below $30,000 all over again right after trading above the $31,000 level in the past few sessions. The world’s largest and most popular cryptocurrency plunged 3% during the early hours of Saturday and was trading at $29,623.79.
It is worth noting that the popular digital token has dropped over 35% so far this year, and trading far below the peak of $69,000 it hit in November last year. The global cryptocurrency market capitalization today is $1.27 trillion, a 3.8% drop in the last 24 hours.
The second largest cryptocurrency Ether, the coin linked to the ethereum blockchain also witnessed a drop 4% on Saturday trading at $1,758.84. Additionally, Dogecoin price today was trading 2.8% lower at $0.080677 and Shiba Inu also saw a drop 4% to $0.00001069. Solana dropped a whopping 12% during the early hours on Saturday trading at $36.33.
Meanwhile, Bitcoin rebounded briefly on Thursday after slumping along with stocks, meeting resistance at the $30,000 level around which it’s been trading for the past month.
Bitcoin has only briefly deviated from the $30,000 level since the collapse of the TerraUSD stablecoin triggered a broad crypto selloff in early May. The token could “form a cyclical low” in the second half of this year, based on previous market cycles, Bloomberg Intelligence analyst Jamie Douglas Coutts said Wednesday.
“The technical outlook is neutral at best and Bitcoin really needs to trade back above $40k before any kind of bullish outlook can be confirmed,” Nicholas Cawley, a strategist at DailyFX, wrote in a note Wednesday.
Bitcoin had staged a mini-rally to start the week, rising to a three-week high of $32,359 on Tuesday and giving some in the markets hope that it might gain upward momentum. Cryptocurrencies have have been hit as the Federal Reserve and other central banks hike rates to combat stubbornly high inflation.
Solana underperformed amid a network outage that was later resolved. The popular DeFi token , dropping as much was little changed at around $40.50, 6.6% after falling 11% on Wednesday.
(With inputs from agencies)