The cryptocurrency market continued its descent with September marking a turbulent and volatile trend for investors. The fear caused by the Evergrande crisis across markets in the beginning of the last week resulted in a sell-off in the cryptoworld as well; Bitcoin prices dropped by about 14 percent from $47,260 at the day’s closing on September 19 to $40,694 on September 21.
A recovery thereafter to $44,895 was not sustained as China imposed a blanket ban on transactions and mining on September 24. By September 29, Bitcoin ended just above the $41,500 mark.
Just like in the stock market, some investor seems to have taken full advantage to ‘buy on the dip’; big market players accumulated coins during this period, said some reports
This is not the first time that China has cracked the whip; in May this year, for instance, it banned financial institutions and payment companies from providing services for crypto transactions.
The trend suggests volatility will continue as bitcoin prices continued to be buffeted by everything from countries using cryptos as fiat currency to Elon Musk’s tweets to policy changes and bans. The news from China is just the latest factor and is unlikely to be the last.
As the chart shows, Bitcoin, the world’s most popular and volatile cryptocurrency, recorded a high above $64,800 in mid-April, following which it dived over 50 percent from its high to as low as $30,681 on May 19, bouncing back to $37,002 at the day’s end.
After the dive at the end of May and a further drop in levels during June-July, Bitcoin peaked above the $52,000 mark in the first week of September, following which it ended at $41,564 on September 29.
Likewise, Ethereum, the world’s second-largest crypto, is now trading below $3,000 after climbing to the high of $4,022 on September 3 (above the $4,000 mark after May 2021). Cardano has also dipped this month after gaining some momentum in the month of August and hitting a high of $3.10 on September 2.
It was all not bad news, however. September has also garnered some cheer for the crypto world. On Tuesday, S&P Dow Jones Indices launched new cryptocurrency indexes, further mainstreaming digital currencies including Bitcoin and Ethereum by bringing them to the trading floors of Wall Street.
Overall, the year 2021 has been a stellar ride for the cryptocurrency community, especially for Bitcoin investors.
At present, 3.9 percent of the world’s population owns cryptocurrency, with Bitcoin being the fifth-largest currency by market cap, according to a NASSCOM report released on September 24. Bitcoin is also the fastest asset to reach a market cap of $1 trillion surpassing gold and the US Dollar, the report noted.