Bitcoin plunges 3.7% to $66,870; here’s why its falling | Stock Market News (2024)

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Bitcoin plunges 3.7% to $66,870; here’s why its falling | Stock Market News? ›

World's biggest cryptocurrency Bitcoin slid as much as 3.78 per cent to $66,817 on Tuesday reflecting trader anxiety ahead of the US inflation data release and the Federal Reserve's monetary policy decision. Bitcoin reached a record high of $73,798 in March, boosted by inflows into dedicated US exchange-traded funds.

This downturn results from a series of adverse market events, including regulatory pressures and macroeconomic factors—the US macro data and the Japanese stock crash were the key reasons to note here.

Bitcoin, ether (ETH) advanced 2%-3% over the past 24 hours on strong day for cryptos. BTC bottomed last week and should rise further based on daily cycles theory, according to chartist Bob Loukas.

The global cryptocurrency market cap today is $2.20 Trillion, a +1.98% change in the last 24 hours.

The three primary factors that drive crypto value are: supply and demand, market perception, and competition. Most cryptocurrencies implement mechanisms to limit supply and prevent inflation. Market perception is closely related to market value. The higher one's market perception, the more one is willing to pay for it.

The most important thing to remember about Bitcoin is that it is a high-risk asset. Never invest money that you aren't willing to lose. Treat Bitcoin as a means of slowly growing your existing wealth rather than an all-or-nothing gamble. As with other investments, it's important to hedge your portfolio.

Despite the long-term rise, Bitcoin has been dogged by periods where it's fallen precipitously. The most recent has been from November 2021 through 2022, when the prospect of rising interest rates and reduced liquidity in the financial markets sent Bitcoin's price much lower.

There are several risks associated with investing in cryptocurrency: loss of capital, government regulations, fraud and hacks. Loss of capital. Mark Hastings, partner at Quillon Law, warns that investors must tread carefully in crypto's unique financial environment or risk significant losses.

So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.

Crypto is also not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC), meaning you should only buy crypto with an amount you're willing to lose.

Which crypto will boom in 2024? ›

EarthMeta (EMT) is considered the next big crypto to invest in. With its strategic focus on the metaverse, particularly through the creation of limited digital real estate, EarthMeta offers a unique investment opportunity.

If this pattern continues into 2030, the price could peak around 2029 or 2030, potentially aligning with Wood's price prediction. If Wood is correct and Bitcoin reaches $3.8 million, a $100 investment in Bitcoin today would be worth $5,510 in 2030. This translates to a compounded annual growth rate (CAGR) of over 95%.

If you've reached or surpassed your investment targets, selling to realize those gains could be wise, especially if you believe the market is at a peak. Additionally, if you require significant capital for immediate expenses or want to reinvest in other opportunities, selling could provide that flexibility.

The Bitcoin halving refers to an event that takes place about every four years and reduces the block reward by 50%. This lowers the supply of bitcoins entering the market, which increases scarcity and can act to raise its price if market conditions remain the same.

ETH's price has dropped sharply in the last two weeks, down almost 30%. Jump Crypto is mainly responsible for ETH's current downfall, as the firm has been liquidating hundreds of millions worth of ETH. Most cryptocurrencies are in the red, with BTC below US$57K.