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Bitcoin plunges below $30,000 amid broader cryptocurrency market sell-off

Bitcoin plunges below $30,000 amid broader cryptocurrency market sell-off
Nearly $100 billion has been erased from the cryptocurrency market, with bitcoin dropping to its lowest level in four weeks.

The top cryptocurrency lost more than 6% on Tuesday, trading around $29,700, with rivals ethereum and XRP losing 9% and 11% respectively, CoinDesk data shows. The drop in crypto prices followed a major sell-off on global stock markets, with the Dow Jones Industrial Average having its worst performance since October 2020.

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Furthermore, bitcoin investment products and funds registered outflows for a second consecutive week, according CoinShares, reaching $10.4 million on July 16, after outflows of $6.9 million the previous week. However, bitcoin inflows for the year still stand at a hefty $4.2 billion.

Still, experts predict a further drop in bitcoin prices until the bullish market returns.

“I am expecting a strong dip towards $22k,” Patrick Heusser, head of trading at Crypto Finance AG, told CoinDesk.

There’s been a broad sell-off in global markets, risk assets are down across the board,” Annabelle Huang from crypto services firm Amber Group told CNBC, explaining the overall drop in crypto prices with “concerns of the quality and strength of economic recovery” and “broader risk assets turned weaker including high yields.

Coupled with recent bitcoin weakness, this just sent the crypto market down further,” she concluded.

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Since bitcoin’s all-time high of nearly $65,000 in April, its price has slumped over 50%. Bitcoin has been going back and forth between $30,000 and $40,000 since mid-May, then briefly broke below the $30,000 mark on June 22, after the People’s Bank of China banned the country’s financial firms from offering crypto-related services to customers.

“All signals are red as bitcoin continues to be weighed down by China’s ultimate crypto ban and worsening macroeconomic conditions from a surge in Covid variants,” Jehan Chu, founder of crypto-focused trading firm Kenetic Capital, told CNBC.

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