Bitcoin’s Drop Closer to $30,000 Stirs Fears of a Deeper Selloff

Bitcoin’s Drop Closer to $30,000 Stirs Fears of a Deeper Selloff

China Crypto Clampdown Sends Bitcoin Closer to Key $30,000 Level Bloomberg 1 hr ago Eric Lam and Joanna Ossinger
(Bloomberg) —
China’s intensifying cryptocurrency crackdown has left Bitcoin flirting with $30,000, a price level seen as key to the short-term outlook for the largest virtual currency.
Bitcoin fell as much as 4.3% Tuesday to $31,171, and for some a breach of $30,000 would hurt sentiment and raise the risk of a steeper selloff. It was trading at $31,500 as of 10:42 a.m. in London.
“We’re most likely going to continue to trade within the $30,000 to $40,000 range and, hopefully, $30,000 will hold as the low of the year,” said Antoni Trenchev, co-founder of crypto lender Nexo in London. “If not, we should revisit $25,000 and even $20,000 before the next leg up.”
China’s latest broadside came Monday, when the nation’s central bank said it had summoned officials from the biggest lenders as well as AliPay to reiterate a ban on cryptocurrency services. Concerns about the environmental impact of the energy-hungry computers that underpin Bitcoin also continue to swirl. Chinese officials are already trying to root out crypto mining operations. © Bloomberg Bitcoin’s plunge toward $30,000 pushes it to low end of recent range
How China Rivals Elon Musk in Rattling Crypto Markets: QuickTake
Meanwhile, the prospect of reduced stimulus as the global economy recovers from the pandemic is also sapping the appetite for speculative investments.
A conclusive break below $30,000 would mean a “massive hit” to sentiment and possibly “heavy selling activity” across the cryptocurrency market, Pankaj Balani, chief executive officer of digital asset derivatives exchange Delta Exchange, wrote in an email. But he expects the coin to rebound and challenge $40,000 in coming weeks. Video: Two bitcoin bulls make the case for cryptocurrency (CNBC) Two bitcoin bulls make the case for cryptocurrency

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