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Bitcoin price drops below $30k as crypto market turns sea of red

·3 min read
Souvenir tokens representing cryptocurrencies Bitcoin, Ethereum, Dogecoin and Ripple plunge into water in this illustration taken May 17, 2022. REUTERS/Dado Ruvic/Illustration
Bitcoin price plunges: Souvenir tokens representing cryptocurrencies Bitcoin, Ethereum, Dogecoin and Ripple. Reuters/Dado Ruvic/Illustration

Bitcoin has fallen below $30,000 after yesterday's positive trend that saw the world's preeminent cryptocurrency surge to almost $32,000.

The cryptocurrency market turned a sea of red on Tuesday after a brief rally on Monday that sent bitcoin over the $31,000 level for the first time in six days.

The combined market cap of all cryptocurrency assets has dropped by $90 billion in the last 24 hours to just over $1.2 trillion.

Read more: Crypto live prices

Bitcoin (BTC-USD) is now trading at around $29,500, down 5% in one day.

Ethereum (ETH-USD), the second largest cryptocurrency by market cap, was down almost 7% in the last 24 hours, to trade at a low of $1,761, as of the time of writing.

The current volatility saw well over $200 million in long positions liquidated across the entire cryptocurrency market.

In the past 24 hours over 74,592 cryptocurrency traders were liquidated, with the total liquidations coming in at $218.63 million, as of the time of writing.

According to data from Coinglass, the largest single wipe-out over the last 24 hours happened on the Okex cryptocurrency derivatives exchange, where a $2.3m ETH-USDT swap was liquidated.

However, amid the bearish collapse of all blue-chip cryptocurrencies, Cardano managed to stay in the green, with a modest rise of 2.4% in the last 24 hours. Cardano (ADA-USD) is now trading at $0.58.

Cryptocurrency analysts are still seeing signals that the market is feeling for a bottom before springing upwards to new highs.

Read more: Crypto: Stablecoin storm spreads after billions of tether is cashed out

Analysts point to the recent institutional investor interest in bitcoin exchange-traded products, ETFs, as a sign of long term strength in the market.

Speaking to Reuters chief investment officer of Arizona-based IDX Digital Assets Ben McMillan said: "It's largely institutional, and to a degree retail investors, recognising that the pain is already endured, and we're closer to the bottom than we are to the top.

"If you're getting into crypto at these levels, a little near-term volatility could be worth a long-term payoff.

Read more: Why is cardano surging past solana?

"A lot of institutional investors are starting to look at crypto as a source of longer-term growth potential."

According to data from bitcoin ETF fund providers institutional investors are returning to crypto by utilising the security and greater liquidity of exchange-traded products.

According to Kraken intelligence, the assets under the management of several bitcoin-futures ETFs have risen in the past week.

The assets of the ProShares Bitcoin Strategy ETFs have grown 6%, while those of the Global X Blockchain & Bitcoin Strategy ETF (BITS.O) and VanEck Bitcoin Strategy ETF has climbed over 3%.

Major institutional players are still pouring money into the crypto industry.

For instance, in late May Silicon Valley venture capital firm Andreessen Horowitz pledged $600M to back the development of metaverse gaming projects.

Watch: Can you live exclusively off bitcoin?

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