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Bitcoin slumps following a major sell-off

written by Bella Palmer

The latest price drop comes after a record-breaking rally that saw bitcoin peak just above $73,000 in mid March

Bitcoin’s market value has slumped by more than $200 billion (£158 billion) since the start of the month following a major sell-off of the world’s leading crypto currency.

The latest price drop comes after a record-breaking rally that saw bitcoin peak just above $73,000 in mid March. It has since pulled back to just over $60,000 amid concerns that the 18-month bull market may be coming to an end.

Despite the recent downturn, some analysts have described the current market situation as a “perfect storm” that could see it soar to new highs over the coming months, citing technological advancements, regulatory changes and wider economic shifts.

In a market report on Tuesday, analysts at crypto ATM provider Bitomat said the recent bitcoin halving that saw its supply squeezed, along with renewed demand brought about by US regulators approving bitcoin exchange traded funds (ETFs), could see the crypto currency reach between $130,000 and $220,000 by 2025.

The years 2020 and 2021 saw record-high prices, institutional adoption, and significant mainstream integration, creating a perfect storm for bitcoin‘s growth, the analysts added. As we look forward to 2025, the convergence of these factors presents a compelling case for another major bull run.

Other major crypto currencies have also seen significant price declines in recent days, with Ethereum (ETH), Ripple (XRP) and Binance Coin (BNB) all dropping by more than 4% over the past week.

On Tuesday, the Crypto Fear and Greed Index, which serves as an indicator for market sentiment, dropped to its lowest level since September 2023, when the price of bitcoin was almost $26,000.

Falling into the ‘Fear’ territory suggests investors have “over-sold irrationally”, as per the crypto price index CoinMarketCap.


The opinions expressed by our writers are their own and do not represent the views of UK Investment Guides. The information provided on UK Investment Guides is intended for informational purposes only. UK Investment Guides is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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