The price of bitcoin has crashed below $30,000, taking its total losses to more than 50 per cent since it hit an all-time high in April.
The cryptocurrency has suffered several price falls in recent days, having traded above $40,000 just one week ago.
Several other leading cryptocurrencies have mirrored bitcoin’s latest crash, including Ethereum (ether), Cardano (ada) and dogecoin.
The market-wide crash took the overall market cap of all cryptocurrencies combined below $1.2 trillion for the first time since February. Half a trillion dollars has been wiped from the market in the last seven days alone.
“The crypto market is in freefall with support levels broken with ease…the latest Chinese mining ban is fuelling the move lower but the overall market tone is very negative with little reason to buy the market,” Nicholas Cawley from trading analysis firm DailyFX, told The Independent.
“It’s a guessing game at the moment – will bitcoin be up or down $10k in a month’s time – no-one knows and those who tell you they do know, don’t. We have seen these moves before, and will likely see them again. If you believe in cryptos, and are a holder, your exit strategy has just been pushed further into the distance.”
Alex Siman, founder of decentralised social network Subsocial, added: “At this rate of fall, it’s difficult to predict the level at which the price will form a baseline for an imminent rebound, as big investors with the potential to reverse prices are choosing to watch from the sideline.
“While we can still see a positive dynamic before the end of this year, to me, steeper plunges to $20,000 won’t come as a surprise either.”