The crypto market lost $100 Billion as Bitcoin falls below $30,000 for the first time since June 22, also bringing down other digital coins.
CoinMarketCap estimates that $100 billion was wiped from the cryptocurrency market within 24 hours.
According to CoinMarketCap data, Bitcoin dropped nearly 7% while ETH fell almost 11%.
Bitcoin fell after a huge sell-off in global stock markets. On Monday, the Dow Jones Industrial Average recorded its worst day since Oct.
Annabel Huang, a partner at Amber Group, said:
“There’s been a broad sell-off in global markets, risk assets are down across the board. There are concerns of the quality and strength of economic recovery and broader risk assets turned weaker including high yields. Coupled with recent BTC weakness, this just sent crypto market down further.”
Bitcoin’s price has fallen more than half off its record high of $65,000 in April.
A new threat of Delta variant of Covid-19 hits Asian markets. US and European markets fell because of concerns of new outbreaks that can cause big damage to global growth.
Overnight, Wall Street S&P 500 closed 1.6% below its previous close, while technology-focused Nasdaq dropped 1.1%. The London FTSE 100 and Stoxx Europe 600 both fell 2.3%.
Chief Asia market strategist at JPMorgan, Tai Hui said:
“Investors are worried that a fresh outbreak could potentially hinder the pace of economic reopening.”
A big sell-off in global stock markets is bringing down the crypto market.
Bitcoin price is also affected by the renewed crackdown on cryptocurrency mining and trading in China.
The major regions that are responsible for mining Bitcoin in China have been forced out of business.
The central bank of China also reached out to financial and fintech companies to remind them not to provide crypto-related services to customers.
China outlawed local cryptocurrency exchanges in 2017 and forced them to move offshore. However, this has not stopped Chinese traders from buying and selling digital currencies. This time Chinese regulators have taken tough measures to tighten restrictions on trading and mining crypto.