Bitcoin drops sharply. Panic limit exceeded

Cryptocurrencies are considered to be one of the greatest technological innovations of the 21st century that has the potential to revolutionize our world. However, the market has its own rules and is highly subject to exchange rate fluctuations – this is especially noticeable in recent days, when prices for virtual currencies have skyrocketed.

Bitcoin rate below $30,000

It is worth paying attention to the rate of bitcoin, the most important cryptocurrency. Since the beginning of April, we have seen a strong decline in quotes, but not so long ago it was not as strong as it is today.

BTC fell below $30,000, the lowest level since July 2020 (when the cryptocurrency reached a similar level). This means that the quotes have fallen by more than 20% since the beginning of the month. Cryptocurrency capitalization fell below $600 billion.

The weak price of bitcoin leads to a decline in other key cryptocurrencies. Ethereum (ETH) has also fallen by more than 20% in recent days, while Ripple (XRP), Cardano (ADA) and Solana (SOL) have fallen by more than 30% (!). It wasn’t that bad for a long time.

Why are cryptocurrencies falling?

Virtual currencies are characterized by the fact that they are highly exposed to exchange rate fluctuations (and they are often criticized for this). Let’s be clear – investing in cryptocurrencies comes with a lot of risk.

Why are we seeing such a decline now? Recently, the European Commission introduced a new law that breaks the anonymity of virtual currencies (and therefore one of the pillars of the industry). In addition, it can be suspected that people are less risk averse, which is expressed in a drop in demand and a drop in the exchange rate. There are many signs that the rate will fall even more.

Source: Tradingview