The market value of Bitcoin fell as much as 30% in just 24 hours, but it has recovered. So far in May, the price of the pioneering cryptocurrency has fallen by 35%.
The sharpening of the correction in the price of Bitcoin (BTC) recently led the cryptocurrency to touch USD 30,000 for the first time since late January. The crypto asset momentarily lost about 30% of its market value in just 24 hours.
Although the price of Bitcoin recently fell to that level, it bounced back to around USD 39,000. Data from TradingView indicates that the price of the main cryptocurrency on the market fell to USD 30,066 at the lowest point of the day.
On January 28th, the Bitcoin charts from that same source showed that price. Since that date, the price of Bitcoin had doubled, reaching a new all-time high above USD 64,000 in mid-April.
Bitcoin recently opened the day at USD 42,900 and lost almost USD 13,000 during a drop. At the time of writing this article, the cryptocurrency is trading at around USD 36,000 and has a market capitalization of more than USD 670 billion.
In the last 7 days, the first cryptocurrency has depreciated by about 40%. Tesla’s founder Elon Musk seems to be the one responsible for that situation. He launched a smear campaign against the alleged environmental impact of Bitcoin mining.
The Chinese government decided to ban transactions with cryptocurrencies to both institutions and payment services. Others believe that this could have contributed to the current situation in the market, completely in the red along with Bitcoin. However, this position of the Chinese government is nothing new.
May Has Been a Bloody Month to Bitcoin
In mid-April, the price of Bitcoin reached an all-time high but has since taken a considerable drop. Although the pioneering cryptocurrency closed last month in the red, there was not much difference between the beginning and the end of that period.
In May, the depreciation of the cryptocurrency that Satoshi Nakamoto created has been much more representative. At the beginning of the month, Bitcoin was trading on exchanges at almost USD 58,000. At the moment, its value is 35% below that mark.
The correction in the price of Bitcoin has caused panic among investors who have recently entered the cryptocurrency market. According to data from Glassnode, they have been selling young coins at a loss. However, long-term holders keep their positions unsold.
The “greed and fear” index seems to support the perception of a crisis of trust in investing in Bitcoin. However, the moment of “extreme fear” also has a connection with buying opportunities.
Various cryptocurrency analysts have made promising predictions, taking into account data such as the holding of coins in the long term. Renowned expert Willy Woo assures that the price of Bitcoin is below the real one during the drop. He foresees that the number of transactions with Bitcoin could lead to its recovery.
By Alexander Salazar
