Bitcoin has hit new highs as experts warn that the assaulted digital token has not hit rock bottom.
Bitcoin has fallen to new lows amid a 72-hour horror for the cryptocurrency.
On Monday at 20:00 AEDT, the most prominent blockchain reached US $ 23,740, the lowest since Christmas 2020.
Bitcoin has lost more than 10% of its value in one day.
It’s a massive drop from eight months earlier, when bitcoin was worth $ 69,000 per witness in November.
But the cryptocurrency lasts a couple of weeks, as experts warn that the assaulted digital tokens have not touched any bottom.
Last week, according to Forbes, $ 100 billion ($ 142 billion) was removed from the combined market capitalization of cryptocurrency.
Leading blockchains have been hit hard by bitcoin, ethereum, BNB, solana, cardano, XRP, dogecoin, polkadot, tron and avalanche.
Ethereum didn’t come out much better than its bitcoin counterpart; the second most popular cryptocurrency collapsed 20 percent over the weekend, to $ 1946, which was its lowest level since March 2021.
Cryptocurrency is no stranger to fluctuating price points and its volatility has often led proponents to encourage other traders to buy while the value is lower.
However, one expert has warned that the strategy will not work this time.
Peter Schiff, chief economist at Euro Pacific Capital, warned that “buying the downturn” was not a good idea.
On Sunday, Mr Schiff warned in a tweet: “This could be a tough weekend for crypto.
“Bitcoin seems to be about to fall to $ 20,000 (USD) and ethereum to $ 1,000.
“If so, the total market capitalization of nearly 20,000 digital tokens would sink below $ 800 billion, from nearly $ 3 trillion at its peak. Don’t buy this sauce. You’ll lose a lot more money.”
Another crypto professional, Benjamin Cowen, warned that many alternative currencies would not survive the current bear market.
“The cold and hard truth is that many seniors (not all) will never see a new all-time high again,” he wrote on social media to his 650,000 followers.
In recent weeks, and especially in recent days, the cryptocurrency has been facing a revision of accounts, as fears are mounting over a global recession amid rampant inflation and the US central bank raising rates of interest.
On Friday, the data found that the U.S. inflation rate had reached a new high, rising to 8.6 percent in May, the worst it has been since 1981.
This Wednesday, the US Federal Reserve is expected to raise its interest rate to combat rising inflation.
Economists predict that the rate will be raised to settle by 0.25 percent or 1.50 percent by July, and the central bank did something similar last month.
Frightened investors have withdrawn from the cryptocurrency and also from the wider stock market.
Read related topics: Cryptocurrency