- Bitcoin declines over 6%, leading other digital coins lower on Tuesday
- The entire cryptocurrency market has erased about $100bn in 24 hours, crypto participants remain confident the market will bounce back and continue upward
The price of bitcoin has accelerated its move to the downside this morning. Over the past few days, bitcoin hovered at virtually unchanged levels around $31,000. In the early trading hours of Tuesday’s session, however, bitcoin’s price dropped below $30,000 for the first time in nearly a month.
The acceleration in bitcoin’s price decline echoed around the crypto ecosystem, bringing the entire market lower by about $100bn in less than 24 hours. Bitcoin declined about 6% for that period to $29,600. Ether, the second-largest token on the crypto board, tumbled roughly 8% to current market price of $1,750 per coin.
Despite the new leg lower, crypto advocates remain certain price will bounce back. Many of them even see the current meltdown as an opportunity to scoop up crypto tokens at greatly reduced prices.
In numbers, today’s session low in the price of bitcoin marked a 55% decline from its all-time high near $65,000 on April 14. In addition, bitcoin earlier today was barely positive for the year, up just 1%, or about $300 since the opening price in January.
The firm belief that bitcoin and other digital assets will recover is driven by the fact that in the relatively short history of cryptocurrencies, the major coins have always rose back from their lows.
Bitcoin, for example, has endured three times a devastating price crash of more than 80%. After each one, however, the leading cryptocurrency has recovered and traded at new highs.
The plunge in cryptocurrencies coincided with a large sell-off in global stock markets. On Monday, the Dow Jones Industrial Average suffered a 2.09% loss, erasing more than 700 points from its valuation. The steep decline for the stock market index marked its worst single-day performance since October.
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