Bitcoin Slumps Below $33,000 as Crypto Market Slides

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Created by TradeOr

3rd Party Analysis 08 Jun 2021

Key Takeaways

  • Cryptocurrencies decline on Tuesday, Bitcoin breaks $33,000 to the downside
  • The largest digital asset is still in the green for the year, up 12%

Bitcoin Slumps Below $33,000

Bitcoin slid to levels last seen during the lows reached in mid-May when the cryptocurrency market experienced what is now called the “Black Wednesday” of the digital asset space. The largest coin by market capitalization this morning is being widely offered as the price has slid under the $33,000 mark, currently hovering around $32,900.

Crypto market participants are not yet able to sustain a solid upward move that could propel the crypto space out of the woods. Bitcoin’s price today tumbled nearly 7%, or over $2,400, extending the decline from yesterday, when the crypto asset dropped by 4.2%. The lowest point today, $32,100, marked a two-week low as the level approached the bottom of the crypto crash on May 19.

Still in the Green

During the crypto market meltdown, the price of Bitcoin dipped to a four-month low, losing over 30% in a single day. Even though, the digital currency recovered more than half of the decline that day, the crash erased over $500bn from the entire cryptocurrency market valuation.

Today, the crypto market experienced a bout of weakness perhaps a result of a variety of factors. Some analysts pointed to the recovery of Colonial’s Pipeline Co’s ransom as proof that cryptocurrency transactions are traceable and not beyond government control. US officials recovered almost the entire amount of Bitcoin paid as ransom to perpetrators of the cyber attack on Colonial Pipeline Co. a month ago.

Meanwhile, Donald Trump told the media he thinks Bitcoin is “a scam against the dollar”. His comments contrast the news that El Salvador plans to make the cryptocurrency legal tender. “Bitcoin, it just seems like a scam,” Mr. Trump said. “I don’t like it because it’s another currency competing against the dollar.”

Bitcoin still remains in positive territory for the year as the price is up 12% since the beginning of the year.

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