50% down from peak, Bitcoin price may fall deeper

For less than $31,000, the cryptocurrency Bitcoin was at times 50% below its all-time high of nearly $69,000 late last year, which is also the lowest level since July 2021.

Even data from Cointelegraph Markets Pro and TradingView said that Bitcoin fell to $ 29,800 in the early morning of May 10 and then rose slightly again. The total market capitalization of Bitcoin currently stands at $582 billion.

Other cryptocurrencies were also hit hard. EthereumBinance, Solana, and Cardano are all down about 15% in the past week, while Dogecoin also reduced by 10%. Ethereum is trading around the $2,300 mark, down more than 8% from yesterday.

Bitcoin is going through a huge price drop in less than a week Bloomberg

According to CNN, major interest rate hikes from the US Federal Reserve (Fed) and long-term bond yields are now at their highest levels since November 2018. The US Dollar Index is now trading near a 20-year high.

It is also bad news for Bitcoin, crypto experts point to the weakening of the dollar as a bullish sign for cryptocurrencies. The Federal Reserve is starting to pull back on its monthly bond purchases and other stimulus measures, which could be bad news for all speculative asset classes.

Experts predict Bitcoin could drop to as low as $20,000 by the end of the year. Coinbase exchange fell 17% on May 9 and is down more than 65% this year. Robinhood, which allows the buying and selling of several cryptocurrencies, is down more than 45% in 2022. Hive Blockchain (HVBTF), Marathon Digital Holdings (MARA) and Riot Blockchain (RIOT) are all down between 50% and 60 % in this year.

Even so, investors remain bullish on Bitcoin in the long term. Many hedge funds and other large institutions are starting to invest in cryptocurrencies, and several global central banks are embracing it as well.