Bitcoin Price drops Below US$30,000 as Global Markets Fall Sharply amid Covid-19’s Delta Variant
On Tuesday morning, the price of Bitcoin against the US Dollar (BTC/USD) dropped below US$30,000. At press time, the price of BTC was trading at US$29,686.46, which is -5.26% down in the last 24-hours. Coinmarketcap’s chart is showing that the YTD (year to date) growth rate of 2021 is -0.04%. This means that all the gains made by Bitcoin in 2021 have been wiped out. Since its all-time high (ATH) price at US$64,863.10 on April 14, 2021, the price of Bitcoin against the US Dollar has corrected by over -54% till today.
Reports say that US$100 billion have been lost from the cryptocurrency market in the last 24-hours. The other leading losers among the major altcoins are Ethereum (ETH), Cardano (ADA), Ripple’s XRP (XRP), and Dogecoin (DOGE), which are down by -7%, -10%, -8%, and -9% respectively.
This compounds the losses that were made earlier due to the crackdown on crypto mining firms by the Chinese authorities and the concerns raised mainly by Tesla CEO Elon Musk regarding environmentally detrimental energy-intensive crypto mining.
It is interesting to note that the sharp fall in the BTC/USD pair mirrors the sharp fall in global markets (such as Dow Jones Industrial Average) as the concerns of a renewed lockdown increase with the fast-spreading Delta variant of Covid-19. Experts also fear that the highly infectious Delta Covid-19 variant and a slower recovery could slow down the economic recovery. Investors and traders also worry that the economic recovery will be hampered again if the lockdowns are imposed again. This fear has made the Dow Jones Industrial Average post its biggest-ever one-day drop since October 2020.
Another reason for the major meltdown in the cryptocurrency market is the New Jersey Office of the Attorney General’s regulatory action against one of the largest bitcoin financial services platforms, BlockFi, on Monday evening. This latest action reignited fears of a broader regulatory crackdown by the different states of the United States. Experts believe that this is another factor that triggered a lot of investors to sell off.