Bitcoin has slipped under $30,000 for the first time in 4 weeks – the move coming after a prolonged consolidation period.
With 75 percent of Bitcoin in circulation held by long-term holders, there’s optimism that the asset can make a quick recovery.
Bitcoin has in the last 24 hours wiped out more than 6 percent and slipped under $30,000. At the time of press, the top digital asset is exchanging for around $29,700 according to our data. This is the first time the asset has breached this level in four weeks. It further marks a more than 50 percent drop from its all-time high of $65,000.
In its plunge, Bitcoin has dragged with it the rest of the market. In fact, altcoins have been hit hardest with a majority wiping out roughly 10 percent. Ethereum for instance has extended its fall under $2,000 with an 8 percent drop reaching $1,700. XRP, BNB and ADA have recorded steeper falls after wiping out more than 10 percent. Combined with other altcoins, the fall has seen the total market lose more than $90 billion in the last 24 hours.
Despite the major price swing, liquidations data shows that investors aren’t all that surprised. Data from Bybt shows that more than 100,000 traders have been liquidated. However, the amount liquidated is relatively small at slightly above $500 million.
According to some experts, Bitcoin has been a casualty of the wider global stock markets sell-off. On Monday, the Dow Jones Industrial Average had the worst day since last October. While Bitcoin is a hedge against traditional markets, it often reacts to the initial shock. Experts are blaming the current market atmosphere on growing concerns over the economic recovery. Bitcoin has suffered double tragedy as this has been combined with recent technical weakness.
Experts say Bitcoin fundamentals are still strong
Following the crash, experts including Lark Davis are still confident that Bitcoin is strong. Sharing recent data, the analyst points to the increasing Bitcoin outflows from exchanges which are evidence that investors are still confident in the asset, and the demand will secure a rebound. Furthermore, miners are currently not selling.
— Lark Davis (@TheCryptoLark) July 20, 2021
For a majority of BTC holders, there is still no reason to panic. According to data from Glassnode, most traders selling right now bought at the top. However, long-term holders who bought before the top, are holding on to their positions. Additionally, on-chain data shows that long-term holders have 75 percent of the circulating supply and 92 percent of them are in profit.
As CNF reported, most experts expect Bitcoin to find strong support at $25,000 before rebounding.
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