Bitcoin tumbles below $40,000 Photograph:( Reuters )
Earlier in May last year, Bitcoin had hit a similar low as its value dropped below $40,000. This happened after China banned financial and payment institutions from providing cryptocurrency services
Bitcoin tumbles below $40,000 mark on Monday falling to its lowest level for the first time in over three months. However, after the dip, it recovered some ground and rose to $41,198.
Speaking about the dropped value, Naeem Aslam, chief market analyst at Avatrade said, "The main culprit behind the slump in crypto prices is the Fed's decision to withdraw massive liquidity, which has been pumped into markets since the onset of the coronavirus pandemic."
Earlier in May last year, Bitcoin had hit a similar low as its value dropped below $40,000. This happened after China banned financial and payment institutions from providing cryptocurrency services.
Bloomberg Intelligence’s Mike McGlone claimed that $40,000 is an important technical support level. He further predicted that bitcoin will eventually experience a surge in its value as the world is becoming digital and the coin becomes the benchmark collateral.
Despite bitcoin's volatility and limitations as a means of payment, it is seen as a store of value to rivals. Also, it is expected to one day surpass gold as a haven investment in the face of high inflation for example.
(With inputs from agencies)