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Bitcoin drops 6% to again trade below $30,000 as sell-off resumes


A bystander uses a Bitcoin ATM in San Salvador, El Salvador, on May 16, 2022.

Anadolu Agency – Getty Images| Anadolu Agency | Getty Images

Bitcoin fell below $30,000 again Tuesday as the cryptocurrency’s recent sell-off resumed.

According to Coin Metrics, the market capitalization of cryptocurrency was at its lowest point, falling 5.5% to $29 618.69. Bitcoin traded above $31,000 after gaining more than 4 percent in the past session. EtherOn Tuesday, the price of $1737 dropped to 6.6%

Bitcoin’s value has fallen more than 50% since its November record of $68,982 which reached an all-time high. Last month, Bitcoin fell to $30,000 after eight weeks of consecutive losses. the Terra collapse.

With equities having had a tough year due to rising rates, inflation fears, and the potential for a slowing economy, cryptocurrencies are following equities’ lead. The S&P 500 has fallen more than 13% in 2022, while the tech-heavy Nasdaq Composite has been hit harder, down 23% this year.

Gautam Chogani, Bernstein analyst said that BTC has a stronger correlation to equity than it does with transactions. He also suggested that ETH could be a rival store of value.

Wall Street still sees a rise in bitcoin. Nikolaos Panigirtzoglou, JPMorgan’s chief economist, said that last month he saw a rebound in bitcoin. about 30% upside for the cryptocurrency after the recent washout.