Bitcoin price: Cryptocurrency’s latest crash is ‘deadly’

Bitcoin has hit a milestone that no-one wanted it to reach, in what experts warn could be “deadly” for the blockchain after a horror five weeks.

Bitcoin investors are feeling the pinch after the cryptocurrency hit its lowest point for months on Tuesday.

And as bitcoin entered its fifth consecutive week of a price crash, experts are growing doubtful about the cryptocurrency’s continued success.

Just past 8pm AEDT, the coin was worth US$46,313 (A$64,900), a drop of seven per cent on the day before, according to CoinMarketCap.

It’s a huge fall from grace for the top-ranked coin after hitting an all-time high of nearly US$69,000 (A$96,000) in November.

That means the blockchain has shed US$23,000 (A$32,000) in value, or 33 per cent, in just several weeks.

Some investment experts think the latest price plunge signals the death knell for the volatile currency.

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The coin is dropping so much it is nearing the US$45,000 mark.

It’s not just bitcoin investors feeling the sting.

The Coin Market Cap top 10-listed digital assets are all trading in the red.

Ether, the native cryptocurrency of the Ethereum blockchain and the second-largest overall, was down basically 10 per cent over the past 24 hours.

Solana was down a whopping 12 per cent while Cardano and Polkadot were also down by about 10 per cent.

All the other top coins are also in the red.

Bitcoin’s slide has dropped below a key level that has experts worried.

It is now close to a 200-day moving average of about US$46,720 — which is bad news for the coin.

Marc Chandler, chief market strategist at Bannockburn Global Forex, warned that the recent happenings were “deadly” for bitcoin.

“The idea that as it matured, the volatility would ease has not really materialised,” he told Bloomberg.

“The volatility is deadly and its other supposed attributes, like a hedge against inflation, seems spurious.”

Another economic forecaster said a 200 day moving average below $46,000 was a “yellow flag” and indicated that bitcoins will soon only be worth US$10,000 (A$14,000) each if the slide continues.

Well known investor Louis Navellier said earlier this month:“ I would take a decline below $US46,000 (the 200-day moving average) to be a yellow flag and a decline below the spring low of $US28,500 to be a completed massive double top, which points to a decline to below $US10,000, which incidentally would match many of the multiple 80+ per cent declines in its storied history.”

And this is a log scale, 10x for each ladder. https://t.co/xA6vQsJxcp

— CZ 🔶 Binance (@cz_binance) December 13, 2021

Every #Bitcoin cycle in history has ended with a red month followed by 2 or 3 very green months. pic.twitter.com/zr1055PvkL

— TechDev (@TechDev_52) October 18, 2021

However, others think this is a momentary setback for cryptocurrency.

Some viral posts on Twitter, as can be seen above, remained bullish about bitcoin.

Considering bitcoin started out trading at about US$0.08 back in 2010, it is still up considerably.