For the first time in six weeks, Bitcoin has fallen below $40,000. The drastic slump happened at the close of business on September 21, with the world’s strongest cryptocurrency dropping by 16% from $47,500 registered early morning the same day.
By 9 pm UTC, the price of Bitcoin was at a shocking low of $39,650. This is a 25% drop from Bitcoin’s recent high of $50,000 registered on September 7.
Bitcoin Highs and Lows
In recent months, Btc has been registering mixed figures, with many highs and lows. The recent drop comes after it had gained over 80% increase from the $29,300 posted on July 20. It has since then enjoyed a solid run, trading above $42,000 for several weeks.
While Bitcoin takes the spotlight due to its plunge, it is not the only cryptocurrency that took a hit on September 21.
According to CoinGecko, 29 out of the top 30 crypto assets suffered a sharp decline. Analysts that Bitcoin’s price drop coincides with the “extreme fear” across crypto investors. Less than a month ago, the same metrics mentioned “extreme greed” present across the market.
Bitcoin Critics Weighing in on the Drop
Several outspoken Bitcoin critics have taken advantage of the price drop and revealed their apocalyptic predictions for Bitcoin. “Mr. Whale,” a known critic of Bitcoin, took the opportunity to proclaim dark days for the crypto giant. The sharp decline also caught the attention of Peter Schiff, another critic of Bitcoin.
According to him, the price drop is an indicator of the growth of altcoins, which will take over once cryptocurrencies take a permanent plunge. Many other critics have also come out to share their thoughts on the shocking price of almost all cryptocurrencies, with many predicting dark times for the sector.
Likened to Poker Chips
The recent price drop also comes a short time after Gary Gensler, the SEC chairman, likened cryptocurrencies to poker chips. He thinks it is time the relevant authorities tightened regulations in the sector.
While some crypto investors are worried about the state of BTC, there are reports of zealous dip-buying to take advantage of the drop. This is because many believe Bitcoin will recover and hit record highs again. Mike Novogratz, the Galaxy Digital CEO, says he won’t feel nervous unless Ether crashes below$2,800 and Bitcoin fails to get beyond $40,000.
Hope for Recovery
Even though Bitcoin has been on a rough patch in recent days, many believe it will regain its stability and start hitting record highs. Reports show that many Bitcoin investors are “certain” it will recover.
Generally, the crypto market has taken a hit, especially over the last year. Just like the global economy, this sector also struggled amidst the pandemic. However, things got better in the new year, with cryptocurrencies hitting record highs.
Even though most Bitcoin investors are confident its current woes will pass, it is a matter of wait-and-see. More to follow on it this interesting turn of events.