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While Bitcoin has fallen by 30 percent, Ethereum, the world’s second-largest cryptocurrency, has fallen by 40 percent.
Cryptocurrency has landed in difficult waters. All popular digital currencies are witnessing a steep decline in red with major technical levels.
The most popular cryptocurrency in the world, Bitcoin dropped by 30 percent to $ 31,000 in the last 24 hours, as Elon Musk, CEO of Tesla, its most popular proponent, backtracked. The route wiped out $ 500 billion from Bitcoin’s peak market value. The coin is now down more than 50 percent from its record level of $ 65,000 posted in April.
It has lost all its momentum after Tesla announced its investment in digital coins in February and agreed to accept payments for its cars and services in Bitcoin. So far, while the EV manufacturer has retained its Bitcoin holdings, it has stopped accepting Bitcoin payments, citing the widespread use of fossil fuels in currency mining.
As Bitcoin’s fortunes deteriorated, other cryptocurrencies also did not perform well. Ethereum, the world’s second-largest cryptocurrency, is down 40 percent, while Dogecoin, the meme crypto popularized by Musk, declined by 45 percent.
After declining by Tesla, the downfall came in BitCoin. The sell-off followed Musk’s tweets announcing Tesla’s fears about the currency. An announcement by the People’s Bank of China on Tuesday reiterated that digital currencies cannot be used for payment, exacerbating the deteriorating sentiment.
Analysts noticed that several key technical indicators were glowing red. Ipek Ozkardeskaya, senior analyst at Swissquote in Gland, Switzerland told Bloomberg that the next critical support level is closer to $ 37,000, then to the $ 30,000 mark. She further said that pullbacks were possible even in the short term, at these levels and even below.
