The prices of ethereum and other leading digital currencies have also rallied in the past two months, leading to hopes that this nascent market may have reached its bottom….reports Asian Lite News
After showing some stabilisation in the last few weeks, world’s largest cryptocurrency Bitcoin has plunged once again below $20,000 after Federal Reserve Chair Jerome Powell’s keynote address.
Bitcoin initially showed little reaction to Powell’s remarks, but then nosedived sharply and on Sunday, it was hovering around $19,975 per digital coin which is more that 60 per cent drop in its value since last year when it reached a record-high of $68,000 in November.
Bitcoin prices had stabilised around the $23,000 to $24,000 level after plunging below $20,000 in June.
The prices of ethereum and other leading digital currencies have also rallied in the past two months, leading to hopes that this nascent market may have reached its bottom.
But the optimism could be premature, and fleeting. Companies with direct ties to the crypto landscape continue to struggle, according to media reports.
Bitcoin, despite the hype about it being digital gold, has turned out not to be an asset that performs well when inflation pressures are mounting and interest rates are spiking.
Reports last month suggested that Bitcoin may tumble to $10,000 this year.
A latest Bloomberg ‘MLIV Pulse survey’ revealed that the Bitcoin price is heading back to $10,000.
Shark Tank’s Kevin O’Leary has also stated that Bitcoin price has not hit bottom yet.
According to experts, the Bitcoin price will hit $10,000 before recovering to the $30,000 level.
Bitcoin has seen its worst-ever days in recent months amid the economic meltdown, leaving several crypto exchanges and trading platforms winding up operations, laying off people, and freezing fresh hirings.
The global cryptocurrency market lost at least $670 million in the April-June quarter (Q2), and 97 per cent of the losses were due to hacks and scams.
Over half of Bitcoin’s daily trading volume fake globally
More than half of all Bitcoin daily trading volumes are reportedly fake, as the world’s largest cryptocurrency nosedives again amid global economic turmoil.
According to a Forbes analysis of 157 crypto exchanges and trading platforms, more than half (51 per cent) of all reported trading volume is likely to be fake or non-economic.
“We estimate the global daily bitcoin volume for the industry was $128 billion on June 14. That is 51 per cent less than the $262 billion one would get by taking the sum of self-reported volume from multiple sources,” the report mentioned.
Bitcoin represents 40 per cent of the $1 trillion global crypto market.
According to the report, there is no genuine method of calculating bitcoin daily volume, “even among the industry’s most reputable research firms”.
“For example, CoinMarketCap puts the latest 24-hour trading of bitcoin at $32 billion, CoinGecko at $27 billion, Nomics at $57 billion and Messari at $5 billion,” the report revealed.
In terms of how much Bitcoin activity takes place, 21 crypto exchanges generate $1 billion or more in daily trading activity, while the next 33 exchanges had volume between $200 million and $999 million.
Binance is the leader with a 27 per cent market share, followed by FTX. Chicago-based CME Group is the market leader in bitcoin futures trading.
After showing some stabilisation in the last few weeks, world’s largest cryptocurrency Bitcoin has plunged once again below $20,000 after Federal Reserve Chair Jerome Powell’s keynote address.
Bitcoin prices had stabilised around the $23,000 to $24,000 level after plunging below $20,000 in June.