The Bitcoin (CRYPTO: BTC) price cratered over the past 24 hours, sinking 10%.
Why the selloff?
The latest selloff puts the Bitcoin price down 35% since 1 January. It’s now down 55% from the all-time highs hit on 10 November last year, when the token reached US$68,790.
The rout comes following another brutal day on US markets, which saw the tech-heavy Nasdaq close down 4.3%.
In a further demonstration that cryptos are trending in lockstep with risk assets like high-growth tech shares, every one of the top-100 cryptos (save the stablecoins) is deep into the red today, according to data from CoinMarketCap.
What the experts are saying about the Bitcoin price
Commenting on the sliding Bitcoin price, head of derivatives at Genesis Global Trading Josh Lim said (as quoted by Bloomberg):
We’re seeing a slow motion meltdown, partially because it’s mostly been long holders selling [instead of levered liquidations]. Now that some corporate treasuries are hovering near their cost basis, markets are waiting and watching to see if shareholders will force some de-risking.
CEO of Galaxy Digital Holdings Michael Novogratz added:
Crypto probably trades correlated to the Nasdaq until we hit a new equilibrium. My instinct is there’s some more damage to be done, and that will trade in a very choppy, volatile and difficult market for at least the next few quarters before people are getting some sense that we’re at an equilibrium.
Senior research analyst at Cumberland DRW Steven Goulden is among those who’ll be vigilantly watching the upcoming Bitcoin price moves (from Bloomberg):
We’re watching carefully to see how the market fares over the next 24 hours. Including whether mechanisms being introduced to help increase reliance, such as LFG lending out Bitcoin to OTC trading firms, will be enough to hold in times of deep stress or if we need additional stabilisation mechanisms.
CEO of Mudrex Edul Patel believes that with investors nervous about fast-rising interest rates, the Bitcoin price could have further to slide, potentially below US$30,000.
“The downward trend is likely to continue for the next few days,” he said.