The price of Bitcoin plunged below $28,000 today for the first time since mid-June, reflecting growing concerns that the cryptocurrency market is headed for a larger downturn.
The world’s largest digital asset fell to around $27,600, down over 4% in the last 24 hours according to CoinGecko. This marks a significant drop from Bitcoin’s recent high of $31,000 in June.
Analysts attributed the sell-off to mounting macroeconomic uncertainties and the Federal Reserve’s aggressive interest rate hikes, which have sapped appetite for risky speculative assets. Investor impatience with the SEC’s delayed decision on approving a Bitcoin spot ETF also dampened sentiment.
The entire crypto market followed Bitcoin’s descent, with Ethereum dropping 4.5% to $1,735 and meme token Dogecoin losing over 5%. But Shiba Inu was hit the hardest, plummeting 10% despite optimism over its new self-sovereign identity protocol.
Some posit the plunge below $28,000 may present a buying opportunity for long-term crypto believers. But without clear catalysts for a rebound, further declines toward $20,000 may occur if the SEC rejects a spot Bitcoin ETF. For now, the crypto bear market shows little sign of abating.
