The world’s largest cryptocurrency Bitcoin is currently trading below $25,000. The cryptocurrency slipped below this mark on Sunday, making it its lowest level since December 2020 in what has been a chain of fluctuations.
It is also pertinent to know that the cryptocurrency market lost more than $150 billion over the weekend.
The cryptocurrency market has had quite a tough year dealing with declines and investors selling off assets to avoid risks. Other macroeconomic factors have also contributed to these challenges arising from instability in the crypto market.
The fluctuations witnessed since this year has been quite a thing bringing the value of some so-called stable coins pegged to the dollar, to nothing. Bitcoin had been stable trading between $30,000 and $40,000 for weeks but the recent decline below $30,000 shows that investors are afraid of incurring more risks and that the macro-economic challenges being faced in the market are kicking in more.
Speaking quite recently, Vijay Ayyar – Vice President of Corporate Development and International at crypto exchange Luno said that “We could see much lower bitcoin prices over the next month or two.” This takes us to several predictions that came for Bitcoin for this year. University of Sussex Professor of Finance Alexander Carol predicted late last year that Bitcoin would decline to as low as $10,000 and advised investors to pull out their investment. Considering the string of recent fluctuations and market conditions, it is not impossible that Professor Alexander Carol’s prediction for the flagship cryptocurrency to come to fruition.
Apart from the challenges and market conditions, the recent action of crypto firm Celsius seems to be adding fuel to the fire. Cryptocurrency firm Celsius on Monday paused all its withdrawals, swaps, and transfers between accounts, citing extreme market conditions.
Vijay Ayyar, the Vice President of Corporate Development and International at crypto exchange Luno commented on the Celsius development. “The Celsius situation is definitely adding fuel to the fire. Broadly the markets were already under pressure from inflation concerns and the interest rate hikes, but with crypto, such contagion events could cause outsized declines, given the market is tightly interlinked these days with a variety of inter-connected protocols and businesses,” he said.
As of the time of this draft, Bitcoin was trading at $24,390.50.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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