At its lowest price point, the world’s most popular cryptocurrency was more than 12% lower on the day and more than 56% off its November all-time high of about $69,000. It later recovered from those losses and traded at $31,836.24 at 3:45 a.m. ET Tuesday, as stated by data from Coin Metrics.
The last time bitcoin traded under $30,000 was in July 2021, when the digital asset traded as low as $29,839.80. Yuya Hasegawa, a crypto market analyst at Japanese bitcoin exchange Bitbank, previously informed CNBC that bitcoin would need to maintain a critical psychological price level of $33,000 to stave off further damage to technical sentiment.
The price decline comes amid a broader, multi-day sell-off that has entrapped much of the crypto market and equities.
Stocks on a steady drop
The crypto market trades 24-hours a day and is down almost 10% in the last 24 hours, as stated by CoinMarketCap data. Meantime, all three major stock indexes closed Monday down, with the S&P 500 falling to its lowest level in more than a year.
Since Thursday, stocks have been steadily declining when the Dow Jones Industrial Average and Nasdaq Composite posted their worst single-day drops after 2020.
For the last year, bitcoin and other major cryptocurrencies have followed the movement of tech stocks, and some analysts state that this close correlation between bitcoin and the Nasdaq challenges the argument that the cryptocurrency functions as an inflation barrier.