- Bitcoin Price Drops Around $23,489
- Market experts say bitcoin may fall further
- Laws are also being made in many countries regarding the crypto segment.
In November last year, it was around $3 trillion, which has now come down to less than $1 trillion.
Bitcoin Price Drops Around $23,489
The crypto market continues to decline with the price of the most valuable cryptocurrency, Bitcoin, falling to almost $21,000. The market capitalization of crypto has plummeted to an almost 18-month low due to heavy selling. It was around $3 trillion in November last year, which has now come down to less than $1 trillion.
Bitcoin, the largest cryptocurrency by value, has fallen to around $23,489. According to CoinGecko, it has lost about 27 percent in the past seven days. Macro economic conditions are the major reason behind the decline in the crypto market. Monthly inflation data from the Consumer Price Index (CPI) of the US government’s Bureau of Labor Statistics showed inflation rising nearly 8.6 percent on a year-on-year basis in May. This is the highest level in the last 40 years. Apart from this, the market was sold off due to the fall in Terra, due to which the investors had to lose millions of dollars. There is also a sell-off in the market due to information about the weakening financial position of some crypto firms.
Market experts say bitcoin may fall further
Investors are staying away from high-risk assets. This is being indicated by the fall in the stock markets around the world. Market experts say that bitcoin may fall further and come to around 20,000. However, its current price is also being said to be a good buying opportunity for long-term investors.
Laws are also being made in many countries regarding the crypto segment.
Cryptocurrencies have faced tough times before. The co-founder of crypto investment platform Koinbasket said in a statement, “The capitalization of the crypto market is expected to exceed $10 trillion in the next few years. However, this segment has high volatility and is a risky asset class. Therefore, investors should allocate only 5-10 percent of their savings for this purpose.” Laws are also being made in many countries regarding the crypto segment. Regulators have also emphasized increasing scrutiny of this segment. China banned bitcoin mining last year as well as tightened crypto-related activities.