Bitcoin Falls Below $30,000 As Crypto Selloff Continues

Bitcoin (BTC) fell below $30,000 U.S. overnight, breaching a symbolic level before recovering slightly to trade at $31,400 U.S. per digital token.

At its lowest point, the world’s biggest cryptocurrency was more than 12% lower yesterday (May 9) and more than 56% off its all-time high near $69,000 U.S. reached last November. Bitcoin’s price recovered from those lows and was trading at $31,400 U.S. early today (May 10), according to data from Coin Metrics.

The last time Bitcoin was below $30,000 U.S. was in July 2021, when the digital asset traded at $29,839.80 U.S. Analysts have said that Bitcoin needs to maintain a key psychological price level of $33,000 U.S. to stave off further deterioration.

The latest price decline comes amid a broader, multi-day selloff in cryptocurrencies that has impacted both digital tokens and equities.

The global cryptocurrency market, which trades 24-hours a day, is down nearly 10% in the last 24 hours, according to CoinMarketCap data.

Stocks have been on a steady decline since last week when the Dow Jones Industrial Average and Nasdaq Composite each posted their worst single day drops since 2020.

Over the last year, Bitcoin and other cryptocurrencies have largely tracked the movements of technology stocks, and some analysts say that the close correlation between Bitcoin and the Nasdaq index challenges the argument that cryptocurrencies function as an inflation hedge and are the equivalent of digital gold.