Bitcoin and cryptocurrency market experiences worst month in three years, with prices crashing – live updates

Bitcoin investors are expressing concerns as the market experiences its worst month in three years, with the cryptocurrency falling below the $80,000 threshold. The recent crash of Bitcoin by 25% from its all-time high has sparked fears among investors. Reports from Forbes indicate that $1 trillion has been wiped off the combined market value during this turbulent week in the virtual currency realm. Despite the downward trend, many Bitcoin holders online are voicing their determination to remain steadfast amidst worries of a potential market crash.

Offering insights into the current situation, crypto expert Markus Thielen mentioned in an email to subscribers that Bitcoin is following a classic ascending broadening wedge pattern. This pattern forecasts a target price in the low $70,000s, adding to the uncertainty surrounding the future of the cryptocurrency. Bitcoin’s value, however, remains notably above its levels from a year ago, despite its current turmoil. David Morrison, an analyst at Trade Nation, noted that the crypto sector is currently experiencing a significant downturn, which has eroded most of Bitcoin’s gains following the results of the US presidential election in November.

Furthermore, the launch of a meme coin by former President Donald Trump has contributed to Bitcoin’s recent decline, thus intensifying the negative sentiment surrounding the market. The meme coin, called Trump, has suffered an 85% decrease in value since its debut, prompting criticism from within the crypto industry. The adoption of cryptocurrencies like Bitcoin and stablecoins in Argentina as a hedge against economic instability has recently faced a setback due to the collapse of the crypto $LIBRA, raising concerns about the country’s crypto economy and foreign investor confidence.

In a surprising move, BlackRock has included Bitcoin in its model portfolios for the first time, indicating growing acceptance and recognition of the cryptocurrency by traditional financial institutions. Diversification benefits and long-term investment potential were cited as reasons for the inclusion by Michael Gates, lead portfolio manager for BlackRock.

Despite the recent setback, Bitcoin’s value has shown signs of recovery, with fluctuations observed throughout the day. The broader market trend has impacted crypto-related stocks like MicroStrategy and Coinbase, which witnessed a 1% loss in their stock prices on Friday morning, aligning with Bitcoin’s decline below $80,000. Analysts have noted the lack of significant actions and promises in the crypto sphere, leading to the current downturn in the market.

Overall, the current situation in the crypto market signifies a period of uncertainty and adjustment, with Bitcoin’s value facing significant fluctuations and challenges. As investors monitor the developments closely, the future trajectory of the market remains unpredictable, raising concerns and questions about the stability and longevity of cryptocurrencies in the global financial landscape.