Key Takeaways:
- Bitcoin price slides below $60,000 as a stronger US dollar is blamed for the fall
- Cryptocurrencies drop for a third straight day, Ethereum’s coin trades near $4,100
What’s Today’s News in Crypto?
The cryptocurrency market has been sliding since the start of the week. Early on Wednesday, the digital asset space extended its decline as total value dropped to $2.6 trillion, from $2.8 trillion on Sunday. To this end, some analysts blame a surging US dollar as a reason for the fall of major tokens.
Still, crypto backers are not sounding the alarm. They believe a correction of this kind is only normal and even healthy for several reasons.
First, it would take away the froth in the crypto market created after last week’s record run. Then, the entire market crossed a valuation of $3 trillion for the first-time ever.
And second, the quick pullback in crypto asset prices would allow new players to join the rally in a discounted market. Ether, for example, is about 16% lower today than it was last week. Other major cryptocurrencies are also showing similar declines, presenting opportunities for traders to buy the dip.
What’s the Price of Bitcoin?
Bitcoin, in particular, has lost about 15% from its record high set one week ago. Last Wednesday, the price of the original cryptocurrency shot up to $69,000, shattering the previous record of roughly $67,000.
Earlier today, the price of bitcoin briefly dropped to levels near $58,400 per coin, the lowest for November.
With this in mind, traders in the fast-developing market have been used to the increased volatility and aggressive price swings. A big part of crypto’s allure is the elevated risk-on style of investing that yields hefty returns for those able to stomach the volatility.
As the current slide unfolds, bitcoin proponents continue to maintain their optimistic view for a new record high this year. Against this backdrop, make sure to check our Buying Bitcoin guide if you’re looking to enter the market.