The global cryptocurrency market was on track for another decline on Saturday, as Bitcoin and other top cryptocurrencies took a significant blow throughout the day.
The $1.19 trillion crypto industry is currently worth less than it did in July of last year. In the past week, the majority of prominent cryptocurrencies, including Bitcoin, Cardano, Ethereum, Solana, and others, have extended their losses against the US dollar.
Overall, the leading cryptocurrencies have lost between half and 80% of their all-time price peaks.
The BTC price dropped below $30,000 on Saturday following the release of a critical inflation report on Friday, which showed little indication that price drops will soon begin to cool off.
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Bitcoin Collapses To $27K
As of this writing, Bitcoin (BTC) is taking a beating and trading at $27,560.18, down 7.8% in the last seven days, Coingecko data show. This occurred after the world’s largest cryptocurrency remained steady at $30,000 for two days.
The dominant cryptocurrency has been trading inside a narrow range for weeks, as crypto and stock markets have struggled to recoup significant upward momentum following a month-long sell-off.
Analysts also point to the ongoing conflict in Ukraine and worries over a tightening of monetary policy by the U.S. central bank as reasons for the decline in stock and cryptocurrency values.
BTC total market cap at $523 billion on the weekend chart | Source: TradingView.com
Darshan Bathija, CEO and co-founder of Vauld, explains:
“We are witnessing frequent short-term spikes in volatility because market participants are trading inside a restricted range due to uncertainty regarding the crypto market’s response to macroeconomic conditions.”
Currently, the cryptocurrency market has lost 6.1% in the last day alone. This number is lower than the lows recorded in July 2021, when market capitalization reached $1.32 trillion. The entire crypto-economy has not been priced this low since the first week of February 2021.
Bitcoin fell to two-week lows on June 11 as bears concluded the week’s trading on Wall Street.
‘Substantial Rebound’ Ahead
The BTC/USD pair fell in tandem with stock markets on Friday, wrapping up the week with a hefty loss – the S&P 500 and Nasdaq Composite both dropped 3% and 3%, respectively.
Meanwhile, despite the negative reports, investors can anticipate a “substantial rebound” in the fourth quarter of this year for the USD value of bitcoin.
According to Nigel Green, CEO and Founder of deVere Group, Bitcoin is highly associated with global stock markets, and a bottom is near for everyone.
“I believe that we’ll soon see a bull run that will lead to a significant bounce in the fourth quarter of the year for the world’s leading digital currency,” Green said.
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Featured image from Inc Magazine, chart from TradingView.com