On Tuesday trading, Bitcoin dropped -8.71 percent to its lowest level at $29,605.21 since January, on leading crypto trading platform, Binance, as at 2.25pm Nigerian time
The cryptocurrency since reaching a peak in May, has wiped out more than $1.3 trillion in market value.
Other cryptos also followed the same pattern as Etherum at $1766.38 lost over 9%, while Binance Coin, BNB, dropped 21% to $236.70
Bitcoin is down 54% from its mid-April peak, paring its year-to-date gain to 4.4%, according to Dow Jones Market Data.
“Bitcoin has violated an important support level and it is likely that we may see more panic in the market as investors will think that it may be the end of Bitcoin,” wrote Naeem Aslam, chief market analyst at AvaTrade in a Tuesday note.
“But investors should remember that Bitcoin is a kind of asset which has fought many similar pessimistic views many times. The current sell off could be the opportunity for many investors to load their portfolio with Bitcoin which is selling at a huge discount,” the analyst wrote, according to Market Watch.
According to Market Watch, this price correction is coming at a time when traditional markets are trying to recover from a heavy selloff last week.
On Monday, Dow Jones Industrial Average DJIA, +1.76%, the S&P 500 index SPX, +1.40% and the Nasdaq Composite Index COMP, +0.79% all experienced a strong rebound from last week’s slide as digital assets shrunk.
Some analysts speculate that bitcoin might be moving out of the crypto and into equities.
China’s new restrictions on digital mining and trading of crypto in that country, has also been attributed as the source of the recent drop in the value of Bitcoin.
