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Four straight days of tumbling prices has seen bitcoin fall to its lowest price since July 2021.
The price crash has coincided with a downturn in the broader financial markets, which has rippled across to other leading cryptocurrencies like Ethereum (ETH) and Solana (SOL).
The overall crypto market is now worth just over $1.5 trillion, down by roughly half its all-time high last November.
Analysts appear divided over whether the latest collapse is part of a longer-term trend, or just a temporary dip in what has been an exceptionally bumpy year for bitcoin.
Falling below $33,000 on Monday leaves bitcoin just 10 per cent away from the critical $30,000 support level, which experts say could prove a key testing ground for BTC and its future price trajectory.
You can follow all the latest news, analysis and expert price predictions for bitcoin and the rest of the crypto market right here.
MicroStrategy boss responds to bitcoin price crash
MicroStrategy CEO Michael Saylor, who heads the world’s largest corporate investor in bitcoin, has joked that the latest price crash has caused him to lose his job at the software firm.
The company holds more than 120,000 BTC, worth roughly $4 billion at today’s prices, bit despite the dip, Saylor is unlikely to sell any time soon.
He is a vocal advocate for holding the cryptocurrency for the long term. MicroStrategy also acquired its holdings at an average price of just over $30,000 per bitcoin, so technically the company hasn’t actually lost money on its investment.
Anthony Cuthbertson9 May 2022 16:21
Bitcoin’s yearly price lows offer perspective
There seem to be certain recurring themes of bitcoin price crashes – which come around not infrequently – as people try to calm their fellow investors.
One popular chart that is shared encourages people to not look at all-time highs, but rather yearly lows. This shows the progress bitcoin has made over the last decade, with annual price bottoms rising from $4 in 2012 to $25,000 in 2021.
Anthony Cuthbertson9 May 2022 15:07
Bitcoin price crash doesn’t deter long-term holders
Despite bitcoin’s recent price slide, some crypto market analysts are remaining positive about the overall outlook for the cryptocurrency.
One metric that investors can take encouragement from is that long-term holders of bitcoin do not appear to be selling their crypto stash. Marcus Sotiriou, an analyst at the UK-based digital asset broker GlobalBlock, claims that this on-chain metric means bitcoin remains “incredibly bullish”, and suggests a bounce back at the key support level of around $30,000.
Here are his full comments:
Anthony Cuthbertson9 May 2022 14:51
Bitcoin market enters ‘extreme fear’
The latest Crypto Fear & Greed Index shows that the bitcoin market is at just 11 – deep into the “extreme fear” territory.
The index compiles data from crypto exchanges with daily online trends to analyse general market sentiment.
It is currently at the lowest level it has been at all year, which some analysts use as a measure to suggest that bitcoin is currently oversold.
Anthony Cuthbertson9 May 2022 14:27
Bitcoin price crash caused by ‘wider adversity’
Crypto market analysts have offered us their insights into what is behind the latest price crash for bitcoin.
“The market is caught in the wider adversity of investment markets that are battling to decide where confortable levels are in the wake of interest rate hikes designed to quell soaring inflation around the Western world,” says Simon Peters, from the online trading platform eToro. “The concern now for cryptoasset investors is when the slide will end.”
You can read the full story here.
Anthony Cuthbertson9 May 2022 13:22
Hello and welcome…
to The Independent’s live coverage of the crypto market.
Several days of tumbling prices has seen bitcoin fall to a 2022 low on Monday, leaving traders and investors wondering when the sell-off will come to an end.
We’ll have all the latest news, analysis and expert price predictions for bitcoin and the rest of the cryptocurrency market right here.
Anthony Cuthbertson9 May 2022 13:00