Bitcoin price plunges below $30,000, $89 billion wiped off crypto-market

16:15, 20 July 2021
Bitcoin price plunges below $30,000, $89 billion wiped off crypto-market Photo: pixabay

The most famous cryptocurrency dropped to its 6-month low.

According to Coindesk data, Bitcoin fell by more than 5%, hitting its lowest rates for a long time. On Tuesday one bitcoin could be traded for $29,834.

At the same time Ethereum cryptocurrency fell by 6.9%, XRP dropped by almost 9%. The initially meme-cryptocurrency Dogecoin fell by nearly 7%.

The drop in Bitcoin appeared after a big sell-off in global stock markets. On Monday, the Dow Jones Industrial Average hit its worst position since last October.

“There’s been a broad sell-off in global markets, risk assets are down across the board,” said Annabelle Huang, a partner at crypto finance service provider Amber Group.

Others highlight similar plunges in other branches: shares in airlines, cruise lines and energy stocks in the US markets, as well as sloping long-term bond rates. Overall this might be a consequence of investors’ fears over the spreading Delta variant of COVID and its dragging down the economy and increasing inflation.

Another fall is expected to come, since experts believe that the crypto sell-off will decrease the price.

"Bitcoin is the ultimate risky asset right now and it could see intense selling pressure if Wall Street enters into panic selling mode," said Edward Moya, senior market analyst at OANDA.