Today, bitcoin holders are having a bad day as the iconic cryptocurrency slid nearly 5%. Bloomberg reports that the fall we have seen in the last 24 hours has brought Bitcoin (BTC) to its lowest level since July 2021. Furthermore, it reckons the downtrend will continue towards a crucial $30,000 make-or-break level, and cryptocurrency valuations generally show a “strong correlation with stocks.”
Most would agree it is fair to characterize cryptocurrencies as volatile. Investing in these currency tokens secured by the blockchain has been a source of delight for those who got in early. However, the ups and downs in the last year or two have required a strong stomach.
As our headline says, the last time we saw BTC brushed with the $30,000 region was back in July 2021. However, it climbed to stratospheric highs in Nov 2021, cresting at nearly $69,000. If you look at today’s valuation, which is oscillating around $33,000 at the time of writing, this represents a markdown of 30% on the best price in 2022 or a 50% reduction since the high of Nov 2021.
While Bloomberg compares the reduction in crypto valuations with the stock market, stocks have fared better in 2022, being just an average of 10% down. Meanwhile, gold, a popular commodity hold in times of turbulence, is up 2.5% this year.