The world’s largest cryptocurrency, Bitcoin briefly fell below $21,000 on Tuesday, before bouncing back on its plunge as investors sold off risk assets.
Bitcoin fell nearly 14% in the past 24 hours, while Ethereum tumbled more than 12%. It was hovering at $21,800 on Tuesday in Asia.
“Everything is on fire right now, be it the equities, be it the crypto assets or anything. What you’re seeing in the market is … fear, uncertainty and doubt. Technically, markets look oversold and there has to be some floor that we’re going to hit in bitcoin in the coming future,” said Nirmal Ranga, head of trading and technical analysis at crypto exchange ZebPay.
The cryptocurrency market fell below the $1 trillion mark on Monday for the first time since February 2021. Additionally, Bitcoin has fallen nearly 70% from all-time high in November 2021.