The world’s largest cryptocurrency is now down more than 9% in a single day
The price of Bitcoin (BTC) has plunged to yet another 52-week low of $30,838 on the Bitstamp exchange earlier today.
The cryptocurrency has been highly correlated with the Nasdaq 100 index. The tech-heavy index is down 23% since the start of the year. For comparison, Bitcoin has shed 31% over the same period of time.
According to data provided by Coinglass, more than $700 million worth of crypto has been liquidated within 24 hours.
The “fear and greed” index, which gets updated daily, is currently flashing extreme fear with 11 points.
Digital Currency Group CEO Barry Silbert says that he would rather own Bitcoin than anything else in the market.
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Still, gold remains in the green on a year-to-date basis, which proves that Bitcoin is far from being a viable store of value.
The dollar index (DXY) is the biggest winner this year. It has surged by more than 8% since the start of the year and managed to hit multi-decade highs.
Risk assets such as Bitcoin have been battered by the Federal Reserve tightening financial conditions at a rapid pace.
Still, Bitcoin may extend its bearish streak. As reported by U.Today, Galaxy Digital CEO Mike Novogratz doesn’t expect Bitcoin to find a bottom any time soon.
In 2018, Bitcoin infamously collapsed 73% before recovering the following year. In 2014, the world’s largest cryptocurrency dropped to 58%.
According to SkyBridge founder Anthony Scaramucci, the price of Bitcoin could bottom out at $18,000 if previous cycles are any guide.