Bitcoin falls below $30k as selloff increases: What you need to know
On Tuesday morning, the biggest cryptocurrency, Bitcoin fell below the 30k mark. This comes after the stock market had one of the worst days this year. Bitcoin plunged more than 3.6 %. Other cryptocurrencies also followed a similar pattern and sustained substantial losses.
Traders saw the 30k mark as a triggering point which might lead to a further drop in cryptocurrency value. The global equities are falling as the concerns regarding the fast-growing delta variant of the coronavirus are increasing.
Keith Lerner, chief market strategist at Trust Advisory Services said, “Investing in these cryptocurrencies is based on confidence and liquidity, and as you have a little bit less confidence, you just have a more challenging short-term environment for the cryptocurrencies.”
Earlier, the Chinese government adopted a stricter regulation against cryptocurrencies which led to a significant decline in the values of all cryptocurrencies. U.S. Treasury Secretary Janet Yellen also told the regulators on Monday that they need to move quickly to establish a framework to regulate the crypto market.
In April, Bitcoin hit its peak value of $65k. Many investors are still saying that this might be a short time loss and in the long run, Bitcoin will reach even further highs. Some finance firms initially predicted that Bitcoin can reach a value upwards of $140k.