(Tokyo) Bitcoin briefly dipped below $30,000 on Tuesday for the first time since July 2021 as the most notorious cryptocurrency continues to suffer from investor risk aversion these days.
Posted at 10:23 p.m.
Bitcoin fell as low as $29,764.14 during trading in Asia around 0:30 GMT, a drop of 3.9% from its last closing price.
It quickly rallied, however, and was trading for around $30,800 after 2 a.m. GMT.
Bitcoin has lost more than 50% of its value since early November when it hit an all-time high near $69,000.
Like other risky assets, it has since suffered from the trend reversal on the equity markets, between concerns about American growth in the face of the tightening of monetary policy against inflation in the United States, uncertainties linked to the war in Ukraine and sanitary confinements in China.
In a note from trading brokerage firm Oanda, analyst Edward Moya warned on Monday of the risk of a “flash crash” in bitcoin if the $30,000 floor broke.
“The worries around growth, even a recession, make the environment very difficult for cryptos. Nobody is looking to buy crypto on the downside right now and that makes bitcoin vulnerable,” according to this analyst.
Bitcoin’s continued fall on Tuesday came after another rout on Wall Street the day before, including its tech-heavy NASDAQ index, which fell more than 4%.