Bitcoin Price Plummets Below £71,000 Amid Market Turmoil and Uncertainty
The cryptocurrency market is witnessing significant downturns, with Bitcoin’s price falling below £71,000, driven by a hack of a major exchange and investor concerns related to Trump and Musk’s influence. Other cryptocurrencies have similarly depreciated, with trading liquidations exceeding $1.3 billion. Despite this, Citadel Securities shows interest in crypto trading, indicating potential recovery amidst widespread market fear.
The cryptocurrency market is currently facing a significant downturn, highlighted by Bitcoin’s price drop below £71,000 amid an environment of growing uncertainties. This decline, amounting to 16.5% from its peak valuation in late January, has resulted in hundreds of billions of dollars in lost market value. Contributing factors include a recent hack of a major exchange and apprehensions regarding the implications of Donald Trump and Elon Musk’s plans on investors’ sentiment.
Crypto influencer Brian Krassenstein pointedly remarked on social media about the adverse impact this downturn has had on the Official Melania Meme Coin, which saw its value plunge from $7.43 at launch to well below $1, accompanied by a further 24.6% drop in just 24 hours according to Coin Gecko. Other major cryptocurrencies have also experienced large declines, with significant percentage drops observed across the board, indicative of a broader market trend.
Specifically, in the last 24 hours, cryptocurrencies such as Solana, XRP, and Dogecoin have seen declines of 12.5%, 12.2%, and 10.9%, respectively. Bitcoin itself experienced a further decline of 7.9%, dipping below the £70,000 mark for the first time since November 15, 2024. This current valuation represents only 81% of Bitcoin’s recent peak value of £86,000 observed on January 19, showcasing its drastic depreciation.
Amidst this turmoil, Citadel Securities has expressed intentions to engage in cryptocurrency trading, contrasting the previous skepticism voiced by its founder Ken Griffin regarding the legitimacy and utility of cryptocurrencies. Griffin, known for his critical stance, questioned crypto’s real economic value in an interview with Fortune, highlighting a shift in attitudes that may positively influence the market’s recovery.
The crypto markets have also experienced a staggering $1.3 billion in trading liquidations, of which $574 million pertained to Bitcoin alone. Bybit has emerged as the most affected exchange, contributing significantly to the volume of liquidation events. Interestingly, earlier in February, liquidations reached as high as $2.2 billion, indicating substantial market fluctuations triggered by fears surrounding Trump’s tariff proposals.
The recent cryptocurrency dip has been partly attributed to North Korean hackers’ reported involvement in the theft from Bybit, a major exchange, as suggested by blockchain analysis firm TRM. This incident comes alongside an overall trend of increased cyber thefts originating from North Korea, which has been implicated in numerous other high-value cybercrime activities.
Additionally, the impending 25% tariffs announced by Donald Trump on products imported from Canada and Mexico have created an atmosphere of uncertainty. Trump reiterated this in a recent press conference, indicating serious implications for the markets that coincide with the cryptocurrency downturn.
The current sentiment among investors has resulted in CNN Business’s Greed & Fear index dropping to a mere 25 points, indicative of “extreme fear.” Though this has since adjusted to 28 points, it still reflects one of the most volatile periods for investors since September 2024, underscoring the pervasive anxiety within the cryptocurrency market today.
In summary, the cryptocurrency market is grappling with substantial declines, particularly Bitcoin’s drop below £71,000 and the fallout from a major exchange hack. External factors, including anticipated tariffs and geopolitical uncertainties, have compounded the situation. Despite this turmoil, Citadel Securities’ renewed interest in cryptocurrency shows potential for recovery. Overall, investor sentiment remains fragile, highlighted by the extreme fear reflected in the Greed & Fear index.
Original Source: www.standard.co.uk
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