Almost $100 billion has been wiped out from the cryptocurrency market, as bitcoin plummeted to below $30,000 for the first time in four weeks amid a broader slump in global financial markets.
On Tuesday, the world’s largest cryptocurrency lost more than 6%, falling to around $29,700 at the time of writing, while other digital token rivals ethereum and XRP declined 9% and 11%, respectively. The latest plunge comes amid a wider sell-off across major stock markets, with the Dow Jones Industrial Average reporting its poorest performance since October of last year.
A number of bitcoin funds and investment products reported significant outflows for the second straight week. According to CoinShares, outflows reached $10.4 million on July 16, following outflows of $6.9 million in the prior week. Despite this, however, bitcoin inflows for 2021 still stood at a colossal $4.2 billion.
Moreover, China’s latest cryptocurrency mining crackdown has also weighed in on bitcoin’s price. Numerous regions across the communist country have forced mining operations to come to an end, given the highly energy-intensive process behind the creation and transaction of new coins. “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,” explained Kenetic Capital founder jehan Chu to CNBC.
Information for this briefing was found via CoinShares and CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.