Bitcoin price dips below $29,000, nothing is going right

The price of Bitcoin is collapsing. Following the fall of the UST and the market turbulence, the queen of cryptocurrencies continues to lose value. Correlated to the stock market shares of tech giants, Bitcoin is unscrewing and risks falling back around $22,000.

After months of hovering between $33,000 and $50,000, Bitcoin suddenly crashed. The digital currency fell back below the $30,000 threshold, a first in almost a year. Like most cryptocurrencies in the market, Bitcoin suffered from the collapse of UST, Luna’s algorithmic stablecoin. Following a coordinated financial attack, the stablecoin lost its parity with the dollar, causing billions of dollars in value to evaporate.

In a bruised market, the price of Bitcoin continues to fall. This Wednesday, May 18, 2022, the queen of cryptocurrencies is briefly fell below $29,000. Overnight, Bitcoin fell to $28,708. This new crash suggests a downward phase for Bitcoin, as for all digital currencies.

Bitcoin on the way to $22,000?

In this gloomy context, many analysts fear that Bitcoin will fall even lower. On Twitter, Nebraskan Gooner, a well-known analyst and trader, is aiming the $22,000 zone in the near future. As predicted by some observers, Bitcoin could come back close to the all-time highs of late 2020.

Obviously, this meteoric decline will hurt the entire market. Experts like Rekt Capital prophesy a 90% drop in the value of some altcoins. Cardano (ADA) and Solana (SOL) have also recorded a sharp drop in their price, as has Ether (ETH).

Still highly correlated to financial markets, and to the actions of tech giants, Bitcoin cannot not yet be considered a safe haven against the vagaries of finance. Questioned by Capital, Laurent Pignot, financial analyst at Zonebourse, explains: “today, in view of the fluctuation of the course, it cannot be qualified as such. You cannot put your money there and tell yourself that it will retain its value over time”. Nevertheless, the expert reminds that Bitcoin “is the best performing asset over the last 10 years”.

Source: Capital

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