For the first time since June 22, the bitcoin rate fell below the $ 30,000 mark – the currency not only reached its minimum values in a month, but also negatively affected the rates of other crypto assets.
According to the CoinMarketCap portal; over $ 90 billion has been washed out of the cryptocurrency market over the past 24 hours. Bitcoin fell more than 6%, Ethereum almost 9%, and XRP almost 11%.
Cryptocurrency issues came after a big selloff in global equity markets – on Monday, the Dow Jones Industrial Average hit its worst reading since last October. According to market analysts, high-risk assets were being sold all over the place.
The ban on mining and trading in cryptocurrencies in China also had a significant impact on the price. The main regions responsible for mining bitcoins in the PRC forced local miners to terminate their activities due to the energy intensity of mining and transactions, as well as related environmental impacts and other reasons. In addition, the Central Bank of China warned companies related to finance about a ban on providing customers with any services related to the production and trading of cryptocurrencies.
The restrictions are not only taking effect in China. The increasingly stringent regulation of the cryptoasset market is observed in the UK, Japan, Canada, Thailand and other countries. The head of the Luno crypto exchange, Vijay Ayyar, said that the sale of bitcoins could lead to their fall to $ 22,000 – $ 24,000. According to his forecasts, in the near future; the exchange rate may fluctuate from $ 20,000 to $ 40,000 per bitcoin.
There will be no growth in the cryptocurrency rate in the foreseeable future
ADVFN CEO Clem Chambers in a previous interview with Stansberry Research said that the fall of bitcoin could not be stopped; and also outlined the lower limits to which the main cryptocurrency of the world is striving.
According to him, “bitcoin winter has already come”; so there will be no growth in the cryptocurrency rate in the foreseeable future. He added that those who bought Bitcoin at $ 60,000 will have to wait a very long time to get their money back. Clem Chambers believes that the bitcoin rate will drop to $ 10,000; and at some point may reach the $ 7,000 mark. However, the cryptocurrency will first drop to $ 20,000.
We’re heading towards $ 20,000 for Bitcoin and $ 1,000 for Ethereum. There will be tremendous volatility in the market. Traders need to be armed to the teeth with the tools to deal with this madness; but for the investor, it’s a waiting game. There is absolutely no need for an investor to re-enter the market until the noise and volatility subside. This calmness will be the bottom and guideline for the acquisition.
There were reports, in June this year, the revenue of Bitcoin and Ethereum miners fell by almost half compared to the previous month.
Crypto investor and analyst Lark Davis believes that bitcoin is still at the beginning of its life; and that the cryptocurrency rate will increase many times over.