Related: Is it Time to Buy the Dip?
Bitcoin is teetering on the precipice of an abyss, according to some crypto market analysts, with its price hitting its lowest level since July 2021.
The cryptocurrency has lost more than 50 per cent of its value over the last six months amid a market-wide downturn that has wiped more than $ 1.5 trillion from the overall crypto market.
Hovering just above $ 30,000 on Wednesday morning, some fear it risks even heavier losses if it falls below this key level of support.
Since first rising above this price at the start of 2021, BTC has never fallen below it for any significant amount of time, meaning it will be in unchartered territory if the sell-off continues.
Bitcoin has so far managed to keep just above it, with some hopeful it can stage a similar recovery to last summer, which took it to new record-breaking highs before the end of the year.
You can follow all the latest news, analysis and expert price predictions for bitcoin, as well as other leading cryptocurrencies like Ethereum (ETH), Solana (SOL) and Cardano (ADA), right here.
Bitcoin price briefly dips below $ 30,000
After hovering above the $ 30k mark for most of the past couple of days, bitcoin took another very brief dip below the price point before almost immediately returning back above.
This happened a few times last July, as bitcoin managed to resist the downward momentum and find a strong support level between $ 28k – $ 32k. It’s still very precarious for the cryptocurrency, as it continues to teeter above the unknown.
Since rising above $ 30,000 at the start of 2021, bitcoin has never fallen below it for any significant period of time – though it has bounced off it a few times. The coming hours and days could prove critical as to whether this trend can continue.
Anthony Cuthbertson11 May 2022 14:58
‘Stable’ coin UST pegged to dollar now worth $ 0.33
Terra’s UST stablecoin, which is meant to be pegged to the price of the US dollar, is now worth less than a third of that, sending shockwaves through the decentralized finance (DeFi) industry and the broader crypto space.
The Luna Foundation Guard (LFG) is now seeking to raise $ 1 billion in order to rescue UST and get it back on parity with the dollar.
According to Terraform Labs founder Do Kwon, LFG is “close to announcing a recovery plan for UST”, though its a complex task for a token controlled by AI algorithms.
The price of Terra (LUNA) has also collapsed, falling by more than 97 per cent over the last 24 hours, according to CoinMarketCap’s price index.
Anthony Cuthbertson11 May 2022 13:57
Bitcoin whales hits 18-month low
The number of large holders of bitcoin, known as whales, has reached its lowest level since November 2020.
The trend was spotted by crypto commentator Lark Davis, who shared a graph showing the number of bitcoin whales tracked through data from on-chain analytics firm Glassnode.
The drop in the number of whales shows how severe this latest sell-off has been, but is also a good sign that the cryptocurrency is being more evenly distributed among investors and not being hoarded by a small group.
Anthony Cuthbertson11 May 2022 12:43
Bitcoin’s price crash explained
What caused bitcoin’s price crash and where does it go from here? These are the questions we asked crypto market analysts and experts in order to help decipher what exactly is going on.
The downturn has coincided with a major slump for tech stocks, with some saying cryptocurrencies have become more synced up with traditional markets as they become more accessible to both retail and institutional investors. Others warn that holding the $ 30k level could be critical for bitcoin’s short- to medium-term prospects.
You can read the full story here:
Anthony Cuthbertson11 May 2022 11:22
Bitcoin price collapse plan for MicroStrategy
MicroStrategy, the world’s biggest corporate investor in bitcoin with holdings of roughly $ 4 billion at current rates, has so far refused to sell any of its crypto stockpile.
Some of that stash was acquired through bank loans that used the firm’s existing holdings as collatoral, which could lead to complications if the price falls considerably further.
CEO Michael Saylor has shared what the plan is if bitcoin completely implodes, claiming that even if the cryptocurrency’s price falls below $ 3,562 – 90 per cent down on today’s prices – the company could still survive.
Anthony Cuthbertson10 May 2022 18:39
Bitcoin price enjoys moment of calm
There has already been $ 1.1 billion liquidations of leading cryptocurrencies over the last 24 hours, according to data from Blockworks, but the mass sell-off appears to have subsided.
Bitcoin has so far managed to hold above the $ 30k level, but only just. After climbing above $ 32,000, it has since slid back down to $ 31,000 in the last hour.
When compared to the volatility of recent days, today has so far been relatively calm. But is there more storm still to come?
Anthony Cuthbertson10 May 2022 16:23
Bitcoin price crash: ‘When in doubt, zoom out’
A popular adage from veteran bitcoin investors during price crashes is “when in doubt, zoom in out.”
Looking at the bigger picture shows that bitcoin is up 250 per cent from May 2020, up 35 per cent since May 2018 and up more than 6,000 per cent since May 2016.
Zooming out even further, a decade ago one bitcoin was worth just $ 5. That marks an astonishing 600,000 per cent price gain.
Anthony Cuthbertson10 May 2022 13:17
The scale model of El Salvador’s as-yet unbuilt Bitcoin City, which was shared by President Nayib Bukele overnight, has given some insight into the mega project.
There’s a lot of trees, a lot of landmarks, and even a “beautiful lookout in the volcano”. That volcano is going to be used to not only power the city with geothermal energy, but also provide the energy to mine bitcoin.
The circular city will slope up the side of the Conchagua volcano on the Gulf of Fonseca in the south-east of the Central American country, with construction expected to begin later this year.
You can read the full story here:
Anthony Cuthbertson10 May 2022 12:08
Bitcoin price $ 10k away from MicroStrategy margin call
MicroStrategy, the world’s biggest corporate investor in cryptocurrency, revealed earlier this month that it faces a margin call for its $ 205 million bitcoin-collateralised loan with Silvergate Bank if bitcoin drops to $ 21,000. We are now just $ 10,000 away from that point.
If it is hit, MicroStrategy CFO Phong Le expained during the company’s first-quarter earning calls that it would use some of its uncollatoralised BTC holdings to pay it. Either way, it would be a disaster for CEO and co-founder Michael Saylor, who has pledged his reputation on the belief that bitcoin’s price will go up in the long term.
Here’s what he said during the earnings call:
Anthony Cuthbertson10 May 2022 10:22
Bitcoin price crash sees market plunge deeper into ‘extreme fear’
The Crypto Fear & Greed Index has fallen even further overnight, dropping from 11 to 10.
The market indicator – which analyzes data from cryptocurrency exchanges, Google Trends, social media posts and price volatility – is used to measure current market sentiment. For some investors, the metric is also used as a gauge for whether to buy or sell, with ‘extreme fear’ seen as a strong buy signal and ‘extreme greed’ as a signal to sell.
The last time the index was this low was on 8 January, 202, and it has only ever fallen lower four times since it was first established in February 2018. The lowest it has ever fallen is 5, which happened in August 2019, when bitcoin was trading below $ 10,000.
Anthony Cuthbertson10 May 2022 09:17