Bitcoin is teetering on the precipice of an abyss, according to some crypto market analysts, with its price hitting its lowest level since July 2021.
The cryptocurrency has lost more than 50 per cent of its value over the last six months amid a market-wide downturn that has wiped more than $1.5 trillion from the overall crypto market.
Hovering just above $30,000 on Wednesday morning, some fear it risks even heavier losses if it falls below this key level of support.
Since first rising above this price at the start of 2021, BTC has never fallen below it for any significant amount of time, meaning it will be in unchartered territory if the sell-off continues.
There is widespread fear in the market on Thursday, after the Terra (LUNA) cryptocurrency fell by more than 99 per cent, dropping below $1 on Wednesday having peaked close to $120 last month.
You can follow all the latest news, analysis and expert price predictions for bitcoin, as well as other leading cryptocurrencies like Ethereum (ETH), Solana (SOL) and Cardano (ADA), right here.
In little over a decade, Bitcoin has risen from a fringe technology popular with cryptographers, to the world’s ninth most valuable asset by market cap.
The cryptocurrency’s dramatic ascent has created millionaires, reimagined money and launched a multi-billion dollar industry inspired by its revolutionary decentralised technology.
But it has also brought with it some unwanted side effects
“Cryptocurrency has always seemed to me like one of those financial manias that sometimes grip the world – like Wall Street in the 1920s, or the dot com boom that collapsed in 2000”, writes Independent columnist Sean O’Grady.
“If cryptocurrencies collapse and fail, this is because the collective of people who use them and create them have failed to find a way of making them stable and reliable, ie useful, besides being a vehicle for speculation. Then again, usefulness probably isn’t the point of cryptocurrencies. Their point is that they have no point. I hope that helps”.
Coinbase warns customers they could lose their crypto if the company goes bankrupt
Coinbase has warned users that their cryptocurrency could be at risk if the exchange ever went bankrupt.
The cryptocurrency exchange included a new disclosure to its customers in its first-quarter earnings report earlier this week.
“Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors”, the warning states.
This is a statement Coinbase needed to make because of a requirement made by the US Securities and Exchange Commission, which said these disclosures are necessary so customers are informed about their investments.
Founder and chief executive of Coinbase Brian Armstrong took to Twitter to reassure customers that the company was not at risk of bankruptcy.
“Your funds are safe at Coinbase, just as they’ve always been”, he wrote.