Since hitting its ATH in March, the world’s famous cryptocurrency Bitcoin has witnessed a steady decline in its value with the most recent being a single day drop that is as high as 10 percent. When put in context of the last seven days, the crypto king has lost over 20 percent of its value.
This massive drop off comes in the same week where the price of the digital asset first dropped to around $52k. The current dip has seen BTC exchange hands for as low as $48780 within the last 24 hours. However, it has slightly corrected and it is now trading for $49376 according to data from Coinmarketcap.
The current bear market has also pushed other prominent coins, including Ethereum, Ripple, and Cardano, into a red run that wiped nearly $200 billion from the $2 trillion digital asset industry. The market cap of all cryptocurrencies is now around $1.76 trillion.
— Peter Schiff (@PeterSchiff) April 23, 2021
Although the reason behind the fall remains unclear, it follows growing warnings from financial institutions and spats with government regulators.
With most global investors constantly eyeing the price, many experts, including Bitcoin’s long-term bull Scott Minerd, believe that BTC might be headed for some “correction.” While talking to CNBC, Scott maintained,
I think we could pull back to $20,000 to $30,000 on bitcoin, which would be a 50% decline, but the interesting thing about bitcoin is we’ve seen these kinds of declines before.
Bitcoin’s Notorious History
A year after its massive surge in 2017, the BTC witnessed a breathtaking fall, nearly losing ninety percent of its values.
However, another year down the lane, it rebounded and reached its highest mark in the first few months of 2021. Yet Minerd believes that it’s a normal evolution for the gold-beater and expects the price to go beyond its recent high.
The Latest Sell off
On the other hand, several other crypto coins, which performed much better than the BTC over the last year, plunged far further than the BTC amidst the latest sell-off in the crypto market.
Although Ethereum has outperformed Bitcoin in the last few months, it also lost significant prices. It comes after it touched its all-time high of $2,600.
Meanwhile, Ethereum’s key rival, Cardano, fell by more than twelve percent in merely a day. It comes after outstanding gains in the last months. Plus, Ripple’s XRP added more to its weekly losses after falling more than twenty percent in a day.