Zimpapers Logo

Bitcoin’s decline amid a crypto crackdown from China has pushed it below $30 000 for the first time since January, nearly pulverizing its entire 2021 gain.

The original cryptocurrency has lost more than 50% from its mid-April high of almost $65 000, leaving it up marginally for the year. That compares with a 12% gain for the S&P 500 since the end of December. The coin started 2021 trading around $29 000 following a fourfold increase in 2020.

“Any meaningful break below $30 000 is going to make a lot of momentum players to throw in the towel,” said Matt Maley, chief market strategist for Miller Tabak + Co. “Therefore, even if Bitcoin is going to change the world over the long-term, it does not mean it cannot fall back into the teens over the short-term.”

Bitcoin dropped as much as 10% to $29 333 yesterday, just above last year’s closing price of $28 997. Other cryptocurrencies were hit harder, with Dash tumbling 22%, XRP falling 21% and Litecoin stumbling 18%.

Among more volatile DeFi tokens, Prude was down 68% and Manyswap tumbled 60%, according to data on CoinMarketCap.com.-Al Jazeera.