Get 40% Off
😲 Missed the +20.8% surge in our stock strategy last month? Not again! Get premium insightsGet 40% Off

“Expect a bloodbath” - Bitcoin drops below $30K for first time since January

Published 22/06/2021, 13:50
Updated 22/06/2021, 13:50
© Reuters.

© Reuters.

By Samuel Indyk

Investing.com – The price of Bitcoin dropped to its lowest level since 28th January on Tuesday, in the wake of more stringent Chinese measures to regulate the cryptocurrency market.

On Monday, China’s central bank, the People’s Bank of China, announced it had summoned some major banks and payments firms, including Alipay, urging them to check client accounts for cryptocurrency transactions and cut their payment channels.

Alipay has confirmed it will set up a monitoring system targeting key websites and account, and blacklist those merchants involved in digital currency transactions.

The latest measures weighed on the major cryptocurrencies with Bitcoin dropping below the key psychological support level of $30,000 which had held since the ‘flash crash’ in late May.

Thoughts from the analysts

Some analysts have argued that dropping below $30,000 could lead to further losses for Bitcoin and other major cryptocurrencies.

“If it goes, expect a bloodbath,” Chief Market Analyst at markets.com Neil Wilson said in relation to the $30,000 level.

Jeffrey Halley, Senior Market Analyst at OANDA also expects further weakness.

“Failure of $30,000 will open the trapdoor to a sub-$20,000 move,” Halley said in an emailed note.

At 13:42BST Bitcoin was trading around $29,500, down 8.5% in the last 24 hours.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.