The price of Bitcoin has dipped below $50,000 U.S. for the first time since February of this year amid a widespread selloff in cryptocurrencies.
Crypto prices are plunging alongside stocks amid a global market selloff that has been caused by mounting fears of an economic recession in the U.S.
Consequently, the price of Bitcoin has dropped nearly 15% in the last 24 hours, pushing the price of the largest cryptocurrency by market capitalization down to $50,963.57 U.S.
At one point, Bitcoin’s price was at $49,111.10 U.S., its lowest level since mid-February.
Bitcoin’s price has now lost nearly 20% of its value in the past week. On July 20, Bitcoin’s price was just above $70,000 U.S.
The sharp decline in Bitcoin comes as other cryptocurrencies also suffer steep declines. Ethereum (ETH), the second-largest cryptocurrency, has seen its price fall 17% to $2,271.21 U.S. in the past 24 hours, effectively erasing its gain for this year.
Stocks related to crypto are also being battered, with shares of digital exchange Coinbase (COIN) down 13% and Bitcoin holding company MicroStrategy’s (MSTR) stock down 17%.
The pullback in cryptocurrency prices comes as the tech-heavy Nasdaq Composite index enters correction territory and Japan’s main Nikkei index plunges 12% and enters a bear market.
The cryptocurrency sector is also struggling with continued selling pressure due to distributions from the bankrupt Mt. Gox crypto exchange and the current U.S. presidential election race.
Less than a week into August, Bitcoin is down 21% on the month and below the key support level of $55,000 U.S. However, Bitcoin’s price is still up about 20% this year.
