Bitcoin continued to decline on Tuesday, trading at a price below $ 30,000 for the first time this month. It fell by as much as 3.46% and reached a value of $ 29,665 per coin.
Many traders believe that dropping below $ 30,000 will provoke a huge downturn, which would shake the crypto market and stock markets. But such is needed to set off a new bullish trend, said Luno head Vijay Ayyar. Ayyar projects that Bitcoin will fluctuate around $ 20,000 - $ 40,000 at the end of this year, and then soar next year.
Because of the recent decline, many opinions that explain why Bitcoin increased to historic highs last April are currently being questioned. Some said that cryptocurrencies can hedge inflation due to its limited supply, but the current growth of Bitcoin, which is 2% since the beginning of the year, now lags behind the 13% increase of the S&P 500.
Obviously, the recent negative data prevents Bitcoin from rising, and one of these is China's regulatory measures. Other countries are also tightening control over the crypto market. For example, US Treasury Secretary Janet Yellen pushed leading financial regulators to speed up the consideration of new rules governing stablecoins.
