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Bitcoin fell below $30,000 for the first time since the end of June, wiping around $89 billion from the cryptocurrency market in the process.
#CryptoCrash trended on Twitter Tuesday morning as traders and observers shared the news of the fall and posted memes to express the dismay that accompanied checking their personal crypto wallets.
Related: China’s Bitcoin Mining Plunges: Is Its Crypto Industry Dead?
For the year, Bitcoin is up 1.87%, but it was down more than 5%. Other coins fell, too: XRP went down nearly 9%, but is up about 135% for the year.
Analysts are pointing to regulatory scrutiny as the cause of the fall, highlighting recent moves by China to crack down on bitcoin mining, which is the energy-intensive process that yields new coins.
Hossein Azari, a former senior scientist at Google and the founder of consumer decentralized finance company Cmorq, expressed no concern in a comment to Entrepreneur Tuesday morning, saying, “Any effort to innovate has volatility. Find me a low-volatility asset that has changed people’s lives.”
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He said, “Bitcoin price is irrelevant to the decentralized technology that is developed, which is leading to a parallel financial system. Those on Wall Street have long limited capitalism to themselves with their rules.”
Fox Business Network’s Susan Li also spoke to Entrepreneur about the concerns regarding the falling valuation of the coin.
“In this computer driven trading world we live in – once we go below a certain level the trading algorithms usually kicks in to sell so there’s a debate about where the next support price for bitcoin might be? Some are saying $20 thousand could be the bottom and the lower predictions for Bitcoin pricing is somewhere between $20 thousand to $27000 a coin,” she explained. “Also remember that bitcoin has gone through a history of boom bust cycles. So remember when Bitcoin hit a record high of $20 thousand in December 2017 but then a few years later it went down to $2000. Multiple factors that have weighed on bitcoin prices including the China clampdown and now the Wall Street shift to safety with the spread in the Delta Variant.”
Bitcoin was the world’s first cryptocurrency and was created in 2009. Transactions of the decentralized, digital currency are anonymous and eliminate the need for brokers or intermediaries.