Bitcoin Falls Below $30,000... "Will Soon See the $20,000 Level"

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jaehee] The price of Bitcoin, the leading cryptocurrency, fell below $30,000 for the first time since early January, Bloomberg reported on the 21st (local time).

On that day, the price of Bitcoin dropped to $29,327 per coin at 8:29 a.m. in Hong Kong. This represents an 11% decline compared to the previous day.

Craig Erlam, senior analyst at OANDA Europe, a foreign exchange information provider, warned, "This looks very vulnerable, and we might soon see the $20,000 level."

Bitcoin had been on a rally, more than doubling in price after surpassing $20,000 for the first time last December. It exceeded $30,000 in early January this year and even approached $42,000 at one point.

The sharp decline in Bitcoin is also seen as a predictable step since it surged rapidly from the end of last year. The explanation is that a correction was inevitable due to the steep rise in a short period.

Michael Sonnenshein, CEO of Grayscale Investments, explained, "Price adjustments are a natural phenomenon in all markets," adding, "From 2016, there have been six instances where Bitcoin's price fluctuated more than 30% until it reached its peak over about a year."

Concerns about potential flaws in Bitcoin's blockchain technology are also cited as a cause of the price drop. BitMEX Research evaluated on the 20th that "there is a possibility of double payment when using Bitcoin for transactions."

The fact that Janet Yellen, former Chair of the U.S. Federal Reserve Board and nominee for the first Treasury Secretary under the Joe Biden administration launched on the 20th, mentioned that Bitcoin usage should be regulated also negatively affected investor sentiment.

Yellen stated at the Senate Finance Committee confirmation hearing on the 19th, "Cryptocurrencies could be exploited for money laundering by terrorists."

This content was produced with the assistance of AI translation services.