Bitcoin just broke below $30,000 for first time since January and ‘it is likely we may see more panic in the market’
Bitcoin, the world’s No. 1 crypto currency, fell to its lowest level since January on Tuesday, extending a price drop that has wiped out more than $1.3 trillion in market value for the broader crypto complex since a peak in May.
At last check, bitcoin BTCUSD,
Ether coin ETHUSD,
“Bitcoin has violated an important support level and it is likely that we may see more panic in the market as investors will think that it may be the end of Bitcoin,” wrote Naeem Aslam, chief market analyst at AvaTrade in a Tuesday note.
“But investors should remember that Bitcoin is a kind of asset which has fought many similar pessimistic views many times. The current sell off could be the opportunity for many investors to load their portfolio with Bitcoin which is selling at a huge discount,” the analyst wrote.
Meanwhile, dogecoin DOGEUSD,
The decline for the crypto has been attributed to regulatory action by China, where regulators have imposed restrictions on digital mining and trading of crypto in the People’s Republic.
Crypto’s price correction also comes as traditional markets are trying to recover from a brutal selloff last week. The Dow Jones Industrial Average DJIA,