Bitcoin price falls below $30,000; nosedives 56% since Nov 2021 high

Bitcoin, the world's largest cryptocurrency by market value, has fallen below $30,000, dropping over 56% from its peak price in November last year, data available on crypto exchange Binance shows. The major fall in Bitcoin is seen in the context of a larger sell-off in the global market amid weak sentiments in recent days.

At the time of filing the report, Bitcoin was trading at $30,737.92, recording an 8.59% decline from yesterday, but a slight recovery from the $29,944 level it touched, Binance data showed. The crypto has fallen 20.20% in the past seven days and 28.19% in the past month. In the year-to-date period, the Bitcoin price has dropped 29.23%. The crypto last year had touched its all-time high of $68,789.63.

Other popular digital currencies also saw a similar fall in the 24 hours. Ethereum, which is the world's second-biggest crypto, fell 5.95%, while Ripple and Solana fell 10.43% and 11.34%, respectively. Popular digital coins like Dogecoin and Shiba Inu fell 10.52% and 13.47%, respectively. The year 2022 has been a quieter period for the digital assets so far.

A similar pattern has been seen in key indexes across the world and also slid lower. Indian equity benchmarks, the BSE Sensex and the NSE Nifty are extending their losses on Tuesday as well. While Sensex is down 56.62 points, Nifty has dropped 20.85 points, following weak cues from global peers.

The Asian stocks dived to their lowest in nearly two years, while major U.S. shares closed at record low as investors expect more tightening as policymakers turn hawkish to combat rising inflation. Down fell nearly 2%, while S&P 500 saw a 3.2% drop. Nasdaq also dropped 4.3%, continuing the negative global trend. Japan's Nikkei Index dropped 2.5%, while Singapore Exchange Limited has been down 1.36%. London's FTSE 100 closed over 2% down.

Shivam Thakral, CEO, crypto exchange BuyUcoin says this is the first time since July 2021 that Bitcoin has traded below the $30,000 mark and is down by almost 56% from its peak in November last year.

"The global financial markets are battered by rising inflation and growing Russia-Ukraine tension, rising inflation, and a highly volatile situation in Sri Lanka. The Indian rupee closed at a record low which is expected to make imports costlier and will have a significant impact on the financial markets. The above factors are putting tremendous pressure on the crypto market as well and we are witnessing a large sell-off by the investors to part the cash for better times," says Thakral.

The global trend in asset sell-off comes after central banks across the world, including India, the U.S., the U.K. and Australia raised key interest rates to tame rising inflation due to supply chain issues and geopolitical crisis in the wake of the Russia-Ukraine war. The US alone has resorted to a 50 bps rise in lending rates, which is its biggest hike in the past 20 years.