Bitcoin plunges below $50,000 as global crypto market plunges

Bitcoin prices plunged below $50,000 on Monday, hitting a low not seen in more than six months.

The decline in the value of digital assets occurred following widespread selling in global markets.

Bitcoin fell as much as 20% to around $49,000 before recovering slightly and trading above $50,000 again.

The sharp decline coincided with a worldwide stock market crash, fueled by fears of a recession.

Bitcoin’s overall market cap fell by nearly $200 billion over the weekend.

READ ALSO:Bitcoin hits new high

The $50,000 level is seen as a key support area for Bitcoin. Bitcoin’s recent decline illustrates the asset’s volatility and its correlation with speculative equities. However, Bitcoin has recovered from the previous sell-off before resuming its long-term uptrend.

US exchange-traded funds for Bitcoin saw their biggest outflow in about three months on August 2.

One question is whether the product will attract buyers who were on the decline when they resume trading, or experience deeper outflows.

Similarly, Ether plunged more than a fifth of its value before paring some of its losses to change hands at $2,342. Most major coins also suffered losses.

By: Babajide Okeowo

Bitcoin crashes below $50,000 as global crypto market plunges first appeared on Latest Nigeria News | Top Stories from Ripples Nigeria.