$90 billion wiped off crypto market as bitcoin drops below $30,000 for first time in nearly a month

PUBLISHED: Tue, 20 Jul 2021 06:31:07 GMT
Arjun Kharpal
CNBC
Share
Key Points
  • Bitcoin fell below $30,000 for the first time since Jun. 22 on Monday dragging other digital coins lower.
  • About $90 billion was wiped off the entire cryptocurrency market in 24 hours as of 11:34 p.m. ET, according to CoinMarketCap data.
  • Bitcoin was down nearly 6% while ether fell 8% and XRP tanked almost 10%, according to CoinDesk data.
In this article
    UKRAINE – 2021/02/09: In this photo illustration, BTCUSD / Bitcoin USD price information seen displayed on a smartphone with a Bitcoin logo in the background. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)

    Bitcoin fell below $30,000 for the first time since Jun. 22 on Monday dragging other digital coins lower.

    About $90 billion was wiped off the entire cryptocurrency market in 24 hours as of 11:34 p.m. ET, according to CoinMarketCap data.

    Watch: Binance CEO on COVID-19 and trading crypto in Africa

    Bitcoin was down nearly 6% while ether fell 8% and XRP tanked almost 10%, according to CoinDesk data.

    The plunge in bitcoin came after a big sell-off in global stock markets. On Monday, the Dow Jones Industrial Average had its worst day since last October.

    “There’s been a broad sell-off in global markets, risk assets are down across the board,” Annabelle Huang, partner at cryptocurrency financial services firm Amber Group, said.

    There are “concerns of the quality and strength of economic recovery” and “broader risk assets turned weaker including high yields,” Huang said. “Coupled with recent BTC (bitcoin) weakness, this just sent crypto market down further.”

    Since bitcoin’s all-time high of nearly $65,000 in mid-April, its price has plunged over 50%.

    A renewed crackdown in China on cryptocurrency trading and mining has weighed on the bitcoin price.

    Watch: Crypto in Africa – Where are the oppurtunities

    Major regions responsible for bitcoin mining in China have forced operations to shut down. Bitcoin mining is an energy-intensive process that facilitates bitcoin transactions and creates new coins.

    China’s central bank has also spoken to finance and fintech companies reminding them not to offer crytpo-related services to customers.

    Sign Up for Our Newsletter Daily Update
    Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
    Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.