Bitcoin falls below $30,000 for first time in a month

$114bn wiped off total cryptocurrency market capitalisation

Bitcoin fell below $30,000 early on Tuesday morning, dragging the wider crypto-asset space with it.

By late morning, the capitalisation of the total cryptocurrency market stood at $1.16trn, down $114bn in the past 24 hours, according to CoinMarketCap

The world’s first and largest cryptocurrency has struggled since May’s substantial sell-offs, trading within a range of $30,000–$40,000. 

Almost a month ago, Bitcoin dipped below to $29,700 on the back of the People’s Bank of China’s order that China’s leading financial firms and payment providers stop facilitating cryptocurrency transactions.  

The crypto quickly returned above the psychological threshold, with many investors viewing the drop as a rare buying opportunity. 

However, with Bitcoin once again failing to tread water above the $30,000 mark, there are growing fears of a more profound pullback.

The momentum that pushed cryptocurrencies to record highs in the first half of the year has evaporated somewhat in the wake of China’s crackdown and mounting environmental criticism, as highlighted in a recent Financial Times ‘Big Read’ report

Regulators step up cryptocurrency scrutiny

The Chinese are not the only government stepping up their scrutiny. 

Last month, the UK’s Financial Conduct Authority banned Binance from offering regulated services in Britain, although the largest Bitcoin exchange in the world by volume was still allowed to interact with British consumers. 

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Over the weekend, Commissione Nazionale per le Società e la Borsa (CONSOB), the Italian securities market regulator, also issued a warning stating that Binance is not authorised to provide services in Italy. 

Fidelity report points to long-term institutional digital asset interest

These recent events will matter little to long-term Bitcoin bulls, however.

Indeed, they may instead point to a recent report by Fidelity, which found that 70% of institutions expect to invest in digital assets such as Bitcoin within the next five years . The report also found that more than half of institutional investors already own digital assets, either directly or via indirect investments. 

By late morning, Bitcoin had traded down 3.6% at $29,657, less than half of its spring all-time high of $64,788. 

Other cryptocurrencies fared worse, however, with ether falling 4% to $1,746 and XRP falling 9% to $0.5202. The likes of Cardano, Chainlink, Litecoin and Bitcoin Cash all suffered declines of more than 10%.

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