The crypto market has experienced another setback as the prices of bitcoin and other major cryptocurrencies have plummeted. Bitcoin, the most dominant crypto by market cap, has dropped below $25,000 for the first time since December 2020, losing more than 5% of its value. Ethereum, the second-largest crypto, has also fallen below $1,650, shedding over 6% of its value.
The crypto market has been under pressure since May, when China announced a crackdown on crypto mining and trading activities. The move triggered a massive sell-off that wiped out more than $1 trillion from the crypto market cap. Since then, the market has struggled to recover amid regulatory uncertainty, environmental concerns, cyberattacks and technical glitches.
Some analysts believe that the latest drop is a result of profit-taking by investors who bought bitcoin at lower prices in the past few weeks. Others attribute it to the lack of positive catalysts and the low trading volume in the crypto market. Some also point out that the crypto market is still in a correction phase after reaching record highs earlier this year.
Despite the bearish sentiment, some crypto enthusiasts remain optimistic about the long-term prospects of bitcoin and other cryptocurrencies. They argue that the crypto market is still in its infancy and that it will eventually overcome the challenges and reach new heights. They also cite the growing adoption of crypto by institutional investors, corporations and governments as a sign of its legitimacy and potential.
