On Tuesday evening, June 22, Beijing time, bitcoin fell below the 31,000 to 29,000 dollar mark, erasing all of its gains so far this year.
Bitcoin fell 12% to $29,000, erasing all gains from last year, ethereum still up 130% in the year
More than an hour before the U.S. stock market opened, bitcoin first fell below $31,000 per coin for the first time since May 19, then fell below the $30,000 psychological integer mark for the first time since Jan. 28. Half an hour after the U.S. stock market opened, bitcoin then fell below $29,000, dropping more than 12% in 24 hours.
According to CoinDesk data, bitcoin is at a low of $28,814 in 24 hours, down from a closing price of $28,997 on the last day of trading last year, and down a whopping 54% from its all-time high price of nearly $65,000 set in April.
Bitcoin was back above $29,000 an hour after the U.S. stock market opened and back above $30,000 an hour and a half after the U.S. stock market opened, narrowing its intra-day decline to 8%.
The market is now closely watching to see if it can recapture and stay above the important technical level of $30,000.
According to analysis cited by Bloomberg, if bitcoin fails to hold above $30,000, it will deal a huge blow to the cryptocurrency market as a whole, potentially leading to a massive panic sell-off by investors tracking momentum, with the next support level to watch likely as low as $20,000. Prior to Tuesday, bitcoin had fallen below $30,000 at least five times this year, but each time it regained ground above that mark.
According to technical analysis of the bitcoin chart, the current bitcoin K-line is in a “death cross” pattern, meaning the average price over the past 50 days has fallen below its 200-day average, an ominous momentum indicator that suggests bitcoin will likely fall further in the absence of more favorable news.
But Matt Maley, chief market strategist at New York-based investment firm Miller Tabak & Co, said there’s reason to believe this death cross might not be so terrible given that the 200-day average is still on the upside. Bitcoin’s “death cross” in March last year did not prevent it from rising, but instead formed a “golden cross” two months later.
CNBC host and U.S. stock market commentator Jim Cramer also said he sold almost all of his bitcoin, but is willing to buy it again if it does crash (to a very low position).
In addition to bitcoin, other mainstream digital currencies have fallen even more. Ether, the second largest market cap, fell below three hurdles in a row from $2,000 to $1,800 today, the first time it has lost $1,800 in almost a month, and fell nearly 8% during the day. However, Ether is still up nearly 130% for the year.
Dash is down 22%, Ripple is down 21%, Litecoin is down 18%, and Dogcoin is down over 16% for the day. Also according to CoinMarketCap.com, among the more volatile DeFi tokens, Prude is down 68%, Manyswap is down 60%, and a handful of tokens are down over 80%.
According to financial blog Zerohedge, the “bitcoin basket” of stocks that hold and trade bitcoin were all negatively impacted today, with MicroStrategy leading those stocks down by more than 10% and Tesla down 0.4%. U.S. blockchain stocks are also down again, with SOS LIMITED ADR down more than 7%, Ninth City down more than 16%, Marathon Digital down more than 11%, and Jia Nan Technology down nearly 7%.
Analysts point out that if Ether stays below $1,800 for 1-2 hours, $500M of ETH will be liquidated.
According to Bitcoin Home data, 201,996 people exploded their positions in the last 24 hours, totaling about $5.068 billion, of which 10,000 Bitcoins and 80,000 Ether suffered losses.