Bitcoin, the world’s No. 1 cryptocurrency, fell to its lowest level since January on Tuesday, extending a price drop that has wiped out more than $1.3 trillion in market value for the broader crypto complex since a peak in May.
After falling as low as $29,083 on Tuesday morning, bitcoin
“Bitcoin has violated an important support level and it is likely that we may see more panic in the market as investors will think that it may be the end of Bitcoin,” wrote Naeem Aslam, chief market analyst at AvaTrade in a Tuesday note.
“But investors should remember that Bitcoin is a kind of asset which has fought many similar pessimistic views many times. The current sell off could be the opportunity for many investors to load their portfolio with Bitcoin which is selling at a huge discount,” the analyst wrote.
The decline for the crypto has been attributed to regulatory action by China, where regulators have imposed restrictions on digital mining and trading of crypto in the People’s Republic.
Crypto’s price correction also comes as traditional markets are trying to recover from a brutal selloff last week. The Dow Jones Industrial Average