Bitcoin Financial News

Security breaches and hacks often highlight the risks of storing Bitcoin (BTC) on centralized exchanges. One analyst even claims that keeping your BTC on exchanges is also a factor for price dips.

The euphoria over cryptocurrencies led by wider adoption, growing institutional interest and awareness of blockchain projects has fizzled out and is now being replaced by fear of higher interest rates, geopolitical turmoil and a looming recession. Barring the dollar-pegged stable coins, all major crypto tokens and altcoins were bleeding. Terra tanked over 49 per cent, wiping off half of the investor wealth, whereas Shiba Inu's 17 per cent drop pulled it out from the top-15 crypto tokens.

TerraUSD (UST), an algorithmic stablecoin hosted by the Terra network and created by South Korea's Terraform Labs, has once again lost its dollar peg after a wave of sell-offs hit the crypto market.

Your gain is my gain, but your loss is not my loss: This is perhaps the feeling among many Indian crypto investors about the government's stand on taxing crypto gains at 30%, the highest slab, but not allowing losses to be offset against other income. If you had invested Rs 1 lakh in Bitcoin a year ago and sold it now, you would get back just about Rs 56,000 as the token's price has fallen. However, this 44% loss will not be adjustable against other income while filing taxes. As a result of this double whammy, many investors have started to explore ways to minimise the tax impact. «Crypto investors don't seem to be happy with the 30% tax. Many say it may have dampened the excitement around Indian crypto investments,» said Vihang Virkar, partner at Lumiere Law Partners. The tax has forced most investors and startups to take a relook at their strategies. Many backers are looking to hold their assets for the long term and have stopped daily trading. This trend, in turn, has hurt crypto exchanges' volumes and revenue. Presented ByDid you Know?Apparel maker G

After weeks of silence on all things bitcoin (BTC)-related, El Salvador’s outspoken President Nayib Bukele has taken to Twitter to announce that his government has bought USD 15.4m worth of BTC – and to showcase plans for Bitcoin City. However, voices of opposition are continuing to issue warnings, with a former chief of the central bank hitting out at Bukele’s plans to fund the city’s construction with a bitcoin bond issuance.

Bitcoin (BTC) fell below $30,000 for the first time in ten months on May 10 as turmoil at Blockchain protocol Terra continued.

Cryptocurrency prices tumbled over the weekend and into on 9 May, with Bitcoin nearing a yearly low as investors continued to dump risky assets amid a tough stock market and challenging macroeconomic backdrop.

Stablecoin Terra's broken dollar peg hits wider crypto markets

Bitcoin slumped below $30,000 for the first time since July 2021 on Tuesday as cryptocurrencies track sinking markets with investors spooked by aggressive US monetary tightening and surging inflation. The world's largest cryptocurrency by market value fell as low as $29,764 in Tuesday trade, before recovering above $30,000, extending a recent collapse in price as investors desert assets viewed as risky. Bitcoin's value has more than halved since a November surge that saw the token hit a record of nearly $69,000.

Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.

Bitcoin fell to its lowest level since July 2021 on Monday as slumping equity markets continued to hurt cryptocurrencies, which are currently trading in line with so-called riskier assets like tech stocks. Bitcoin dropped to as low as $32,763.16 shortly before 1100 GMT, in its fifth consecutive session of falling. The cryptocurrency has dropped 13% so far in May and has lost more than half its value since it hit an all-time high of $69,000 in November last year.

The number of transactions on the Bitcoin network has spiked over the past week, which blockchain analysis firm Glassnode suggests are ‘urgent’ transactions due to investors de-risking.

Bitcoin fell as much as 3.1% to $29,992 in Asian trading.

Bitcoin, the largest crypto token in terms of market capitalization and dominance, dropped below the $33,400 mark on Monday. It has wiped out more than half of investors' wealth since hitting a lifetime peak of $67,566 in November 2021. According to industry players, the anticipation of a sluggish global economy, rising interest rates, inflationary worries, global economic crisis and risk aversion are key reasons dragging the price of Bitcoin lower. Vikram Subburaj, CEO, Giottus Crypto Exchange, said Bitcoin and the wider crypto markets have been affected by negative sentiment across investor groups given the hike in interest rate and the concerning inflation data globally.

Bitcoin price has continued its descent after breaching an extremely bearish continuation pattern. The recent sell-off seems to be happening after the FOMC meeting and suggests that is mainly driven by long-term holders that purchased BTC in 2021 and 2022.

Barring the dollar-pegged stablecoins — USD Coin and Tether — all major crypto tokens and altcoins were trading lower. Terra dropped 6 per cent, whereas Avalanche tumbled 5 per cent. Ethereum and Shiba Inu plunged 4 per cent each. The global cryptocurrency market cap was trading sharply lower at the $1.53 trillion mark, falling about 3 per cent in the last 24 hours. However, the total cryptocurrency trading volume zoomed about 14 per cent to $98.63 billion.

Sentiment across the cryptocurrency market plunged even deeper on May 9 as an escalation in the ongoing sell-off intensified with bears pushing Bitcoin (BTC) to $30,334, its lowest price since July 2021. 

Roughly $1.4 billion worth of Bitcoin (BTC) was reportedly moved from a wallet tied to Luna Foundation Guard (LFG) on Monday, raising questions about its ultimate destination on a day that has seen Bitcoin’s price tumble more than 11%. 

Bitcoin’s (BTC) current 20% drop over the past four days has put the price at its lowest level in nine months and while these movements might seem extraordinary, quite a number of large listed companies and commodities faced a similar correction. For example, natural gas futures corrected 15.5% in 4 days and nickel futures traded down 8% on May 9.

Key on-chain metrics tracked by the crypto exchange Kraken show that the Bitcoin (BTC) network last month had healthier on-chain fundamentals than most other blockchain networks, according to a monthly report for April.

Bitcoin’s price action has been quite a roller coaster especially in the last week or so, during which it turned heavily bearish. However, it is currently in a critical position that might determine whether it will continue tanking or register a recovery rally in the next few days.