By
Chimamanda U. Martha
April 25th, 2024
BTC has once again tanked over 50% in high-volatile trading since its all-time high last month wiping off all the 2021 gains. However, the crypto has recovered back from its Wednesday low of $30,000.
On Wednesday, May 19, bitcoin and the overall cryptocurrency went through one of the biggest crashes in market history. Nearly $700 billion have been eroded from the overall crypto space while Bitcoin valuations tanked by $250 billion. On Wednesday, the Bitcoin (BTC) price crashed to a low of $30,000 almost wiping off all its 2020 gains.
However, it looks like big players in the market did the bottom fishing thereby pulling back the price. From yesterday’s bottom, the Bitcoin (BTC) price has recovered over 30%. At press time, Bitcoin is trading at a price of $39,626 with a market cap of $742 billion.
From its high above $64,000 in April last month, the BTC price is still down by 38%. In just the last two weeks, Bitcoin has eroded more than $300 billion from its market valuations. Needless to say, Bitcoin (BTC) and the overall crypto space are currently facing massive volatility.
The world’s largest cryptocurrency has been currently under pressure from some of the biggest market news. Tesla dropping Bitcoin payments last week triggered all the mayhem that were are witnessing. However, things just didn’t stop here. Elon Musk further spiced it up by tossing speculations that Tesla can liquidate its BTC holdings anytime in the future. He even went ahead on a Bitcoin bashing spree calling BTC as “highly centralized” by a handful of miners in China.
When Bitcoin already seemed under pressure, Chinese regulators jumped in. On Tuesday, May 18, China banned all of its local banks and financial institutions from having any crypto-related exposure.
Experts Views on Bitcoin (BTC) and Market Crash
Speaking to CNBC, Ulrik Lykke, executive director at crypto hedge fund ARK36 said:
“The crypto markets are currently processing a cascade of news that fuel the bear case for price development. In terms of Bitcoin’s outlook, things may be looking grim right now, but historically this is just yet another hurdle for Bitcoin to overcome and a small one compared to what it has braved in the past.”
Speaking to CNBC’s Squaw Box, Galaxy Digital CEO Mike Novogratz said:
“A lot more people own crypto. Crypto has seeped into pockets all over our society and you had a confluence of events – a combination of Tax Day, Elon Musk tweets, whatnot, where you started breaking down the positivity in the price action, and now we’ve got a liquidation event”.
Following all the recent mayhem, regulators would be watching the show closely. We could possibly see some major regulatory action in the coming weeks.