Bitcoin has hit a milestone that no one wanted to reach, with experts warning that after five weeks could be “deadly” for the blockchain.
Bitcoin investors are feeling the pinch after the cryptocurrency hit its lowest point for months on Tuesday.
And as bitcoin enters its fifth consecutive week of price crashes, experts are becoming suspicious of the cryptocurrency’s continued success.
According to CoinMarketCap, just before 8 p.m. AEDT, the coin was valued at US$46,313 (A$64,900), a seven percent drop from the day before.
This is a huge drop from grace for the top-ranked coin after hitting an all-time high of nearly US$69,000 (A$96,000) in November.
This means that the blockchain has lost US$23,000 (A$32,000) in value, or 33 percent, in just a few weeks.
Some investment experts believe that the latest price drop signals the death knell for the volatile currency.
It’s not just bitcoin investors feeling the sting.
CoinMarketCap Top 10 listed digital assets are trading in the red.
Ether, the native cryptocurrency of the Ethereum blockchain and the second largest overall, was down 10 percent in origin over the past 24 hours.
Solana fell 12 per cent, while Cardano and Polkadot also lost nearly 10 per cent.
Bitcoin’s decline below a key level has experts worried.
The 200-day moving average is now near US$46,720 – which is bad news for the coin.
Mark Chandler, chief market strategist at Bannockburn Global Forex, warned that recent events were “deadly” for bitcoin.
“The idea that volatility will decrease as it matures has not really materialised,” he said. bloomberg,
“Volatility is deadly and its other perceived properties, such as hedge against inflation, seem spurious.”
Another economic forecaster said below the 200-day moving average of $46,000 was a “yellow flag” and indicated that bitcoin would soon be worth only US$10,000 (A$14,000) if the slide continues.
Well-known investor Louis Navelier said earlier this month: “I would consider a decline below $46,000 (the 200-day EMA) as a yellow flag and a downside correction below the spring low of $US28,500. Massive double top, pointing to a decline below $10,000, which would coincidentally match several 80+ percent declines in its historical history.
However, others see it as a momentary blow to the cryptocurrency.
As can be seen above, some of the viral posts on Twitter remain bullish on Bitcoin.
Considering that bitcoin started trading in 2010 at around US$0.08, it is still up quite a bit.