Crypto Market Crashes, Wiping Out $90 Billion in 24 Hours
Bitcoin fell below $30,000 this morning for the first time since Jun. 22, wiping out almost $90 billion off the crypto market in 24 hours, according to CNBC.
This morning, Bitcoin stood at $29,700, down 5.1% in the past 24 hours, according to CoinMarketCap. This represents a loss of more than 50% from its all-time high of $65,000 in April.
Ether, the second-largest crypto by market cap was at $1,745, down 3.43% in the last 24 hours, according to CoinMarketCap.
The crypto market is not the only one hit as the Dow Jones had its worst day ever since October yesterday, tumbling more than 700 points.
Increased concerns about the Delta variant and a potential slowing down of the economy are partly to blame.
“There’s no big catalyst, but it’s a combination of factors. There are questions about vaccines, we might still get restrictions on consumer behavior, mobility, this is increasingly back in the market’s mind,” James Athey, an investment manager at Aberdeen Standard Investments, told The Wall Street Journal. “We’re also seeing the summer lull. It’s very quiet so volumes are lower, liquidity is thinner.”
According to James Butterfill at Coinshares, after a few weeks of inflows into Bitcoin there have been outflows for the last two weeks, with outflows last week totaling $10.4 million.
“These outflows are minimal relative to the significant outflows witnessed in May and June this year,” he writes.
“Volumes in Bitcoin fell to just 38% of the year-to-date average, totaling US$3.9bn per day last week. We do not believe this represents something ominous in the market as we saw similar seasonal dips in volumes during the summer months in recent years,” he adds.
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