In the last 24 hours, the cryptocurrency market has lost approximately $130 billion in capitalization due to the ongoing depreciation of major digital currencies. In the last 24 hours (at the time of writing), Bitcoin has lost about 4.8% in value to $34,100, while Ethereum immediately fell 10.8% to $2,260. Earlier today, both digital coins fell to their lowest prices since July, about halfway from their all-time highs.
While that’s little consolation, a similar bearish trend can be seen in the stock market, where many company stocks have continued to fall year-to-date and are just coming off their worst week since March 2020. Investors are selling risky assets like tech stocks in preparation for tighter monetary policy from the US Federal Reserve and a hike in interest rates.
Vijay Ayyar, vice president of corporate development and international expansion, noted that given the nature of these assets, Bitcoin and other cryptocurrencies are much more responsive to global changes. According to his forecast, given the current situation, Bitcoin could fall to $30,000-$32,000.
He explained that if bitcoin holds above $30,000 for an extended period of time, say a week, it should establish a base at that level before the market moves higher. Given the lack of investor confidence, it will take time for the market to bounce back, Aiyar said.
Aiyar’s opinion on the next $30,000 benchmark is also shared by a number of pundits, but there are enough of those who believe Bitcoin could dip below $30,000.