Key Takeaways
- Bitcoin pressured on Tuesday, down over 3% on the day
- The crypto asset hovers in the red for April, down nearly 7%
Bitcoin Slumps Below $55,000
Bitcoin has been pushing lower for a fifth straight day but keeping above the latest bottom. Two days ago, the digital asset reached as low as $52,300, a one-month low, as the cryptocurrency market plummeted on bad news linked to power outages in China and rumours on money laundering with cryptocurrency.
On Tuesday, following four days in red territory, Bitcoin is trading below its opening price of $56,200, currently floating around $54,900 as crypto market participants are approaching the space with caution.
Bitcoin’s market valuation has erased nearly $200bn in less than a week. The world’s largest digital asset is now worth just a little over $1tn, down from its all-time high of $1.2tn on Wednesday. For the month of April, so far, Bitcoin remains in negative territory, down by almost 7%.
A Fourth Bearish Trend For Bitcoin This Year
The current decline of 16% from the all-time peak last Wednesday marks another downturn for the crypto asset. The bearish trend is the fourth one this year that has brought the asset lower by over 15%. During the first selling wave, spanning from January 8 to January 22, bitcoin slumped by more than 31%, before marching to a new all-time high.
The second sell-off occurred for the relatively brief period of seven days between February 21 and February 28. During that time, the crypto token depreciated by 26%. The third market meltdown was relatively more contained as Bitcoin declined 18% from March 13 to March 24. Bitcoin has powered to record highs after each of the three meltdowns.
The current market sell-off is nothing new to crypto enthusiasts who are used to living with the heightened volatility in Bitcoin’s price. Crypto advocates remain certain in Bitcoin’s power to rise back from its lows, while opponents continue to expect the crypto frenzy to wear out and fade away.
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