BTC dropped below $ 30,000 today, hitting its lowest level since January 28th. This is due to the movement of Chinese mining companies overseas and increased regulatory pressure on the cryptocurrency industry.
In just one hour, the bitcoin rate fell by 6%, breaking through the support at $ 30,000 and reaching a local minimum of $ 29,294. Bitcoin first crossed the $ 30,000 boundary on January 2. Thus, for six months, BTC “went” up and down by $ 35 thousand. Most likely, the fall will not stop quickly and Bitcoin will continue to move down in the coming days.
BTC has been balancing between the $ 30,000 and $ 40,000 levels for four weeks. A week ago, BTC was worth about $ 40,000, but in recent days it has experienced strong surges in volatility, after which it rushed down, unable to withstand pressure from several sides at once.
In mid-April, bitcoin has a historical maximum, slightly short of $ 65,000. The triumph did not last long, as in 2017. Already in May, bitcoin began to decline again and corrected by more than 50% in two months.
Many cryptocurrency analysts predicted that Bitcoin could drop to $ 20,000. However, analyst and trader Peter Brandt believes that in the long term, such a “shake-up” will only benefit Bitcoin, and it will reach $ 100,000 in the medium term.
Meanwhile, bitcoin is pulling other cryptocurrencies with it, which also suffer losses. So, ETH fell to $ 1,754, XRP fell to $ 0.5252, ADA – to $ 1.02, and the comic DOGE cryptocurrency fell to $ 0.16490.
The cryptocurrency market began to weaken due to disagreements between proponents and opponents of Proof-of-Work (PoW) cryptocurrencies over the negative impact of mining on the environment. Their disputes have led Chinese regulators to put more pressure on mining companies to close down or move to other jurisdictions.
The head of blockchain development at Facebook, David Marcus, is surprised why this negatively affects the Bitcoin price:
“Is it bad to move Bitcoin’s mining power to the West?”
Compounded by the bearish pressure on cryptocurrencies and aggressive behavior of the US Federal Reserve (FRS), which postponed the start of the cycle of raising interest rates several years earlier than it was planned in previous years.
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