Bitcoin resumed its slump on Tuesday, erasing all of the prior session’s gains and ending a four-day winning streak as volatility continues to whipsaw the crypto world.
(Bloomberg) — Bitcoin resumed its slump on Tuesday, erasing all of the prior session’s gains and ending a four-day winning streak as volatility continues to whipsaw the crypto world.
The largest cryptocurrency by market value was down 4% to $23,119 at 1:21 p.m.
in New York, the biggest one-day drop since June 26. Other cryptocurrencies didn’t fare much better, as Ether — Ethereum’s native token — sank below $1,700 on losses of around 5.7%, Cardano and Solana both took similar losses.
“The volatility is, and always has been, huge with any of these crypto investments,” Brian Nick, chief investment strategist at Nuveen, said in an interview.
Despite Tuesday’s drop, Bitcoin has enjoyed a recent uptick after months of being beat down, as it finally broke through several closely watched price levels.
The bellwether crypto asset has been trading around $23,000 after posting its best month since October in July.
Still, risk-off sentiment and investor caution abound in the market. Michael Novogratz, the billionaire who founded crypto financial services firm Galaxy Digital Holdings Ltd., said that he is doubtful of Bitcoin will break through the $30,000 level anytime soon in a Bloomberg TV interview on Monday.
“I quite frankly would be happy if we’re in a $20,000, $22,000 or $30,000 range for a while,” Novogratz said.
“We’re not seeing huge institutional flows, to be fair, but we’re not seeing anyone back away.”
Recent turmoil is not likely to ease investor worries as another exchange, Hodlnaut, halted withdrawals and the US Treasury Department slapped the Tornado Cash protocol with sanctions for allegedly.
Despite the recent gains, buffeted investors are staring at a year-to-date loss of around of 50%.
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