As Bitcoin fell below $30,000 for the first time since June 22, the crypto market lost $100 billion, which also dragged down other digital currencies.
CoinMarketCap estimates that 100 billion US dollars have been wiped from the cryptocurrency market in 24 hours.
According to data from CoinMarketCap, Bitcoin is down nearly 7%, while ETH is down nearly 11%.
Bitcoin fell after a sharp sell-off in global stock markets. On Monday, the Dow Jones Industrial Average recorded its worst day since October 1.
Annabel Huang, Partner of Amber Group said:
“There has been widespread selling in the global market, and risk assets have fallen across the board. People are worried about the quality and intensity of the economic recovery and the weakening of broader risk assets, including high-yield. Coupled with the recent weakness of BTC, this will only push down further. Crypto market.”
The price of Bitcoin has fallen by more than half from the historical high of $65,000 set in April.
The new threat of Covid-19 Delta variants hit the Asian market. Fearing that the new epidemic could cause significant damage to global growth, the US and European markets fell.
Overnight, the Wall Street S&P 500 index closed 1.6% lower than the previous trading day’s closing price, while the technology-focused Nasdaq index fell 1.1%. The London FTSE 100 Index and the Stoxx Europe 600 Index both fell 2.3%.
Tai Hui, chief Asian market strategist at JPMorgan Chase, said:
“Investors worry that the new outbreak may hinder the pace of economic reopening.”
The sharp sell-off in global stock markets is dragging down the cryptocurrency market.
Bitcoin prices have also been affected by China’s renewed crackdown on cryptocurrency mining and trading.
The main area responsible for mining Bitcoin in China has been forced to close.
The People’s Bank of China also contacted financial and financial technology companies to remind them not to provide customers with encryption-related services.
China declared local cryptocurrency exchanges illegal in 2017 and forced them to move overseas. However, this has not stopped Chinese traders from buying and selling digital currencies. This time, Chinese regulators have taken tough measures to tighten restrictions on cryptocurrency trading and mining.