Bitcoin drop below $30,000 sparks fears of another crypto winter — here’s why bulls aren’t worried
Bitcoin’s brief drop below the symbolic price threshold of $30,000 on Tuesday has reignited talk of a crypto winter. It doesn’t help that cryptocurrencies like dogecoin, XRP and others saw sharp drops in the last 24 hours.
But experts tell CNBC that bitcoin’s fundamentals are good, and the market conditions in 2021 are very different than the last big crypto crash in 2018.
What’s happening to bitcoin
Bitcoin’s rise in the last 12 months has had a lot to do with the billionaires and corporations that are buying bitcoin in big amounts. The surge in interest from mainstream financial players has not only reformed bitcoin’s image but has also fomented a supply shortage, which helped drive up the price of the token.
But since the price of bitcoin peaked over $63,000 in April, the last few months have been rough for the world’s biggest cryptocurrency.
China’s countrywide crackdown on the nation’s bitcoin miners certainly isn’t helping.
More than half the world’s bitcoin miners are in China, and Beijing has made it clear that it wants them out. In May, the government called for a severe crackdown on bitcoin mining and trading, setting off what’s been dubbed “the great mining migration.”
Reference: CNBC
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