Bitcoin market value plunges by more than $200bn since the start of the month

Thelatestpricefallcomesafterarecord-breakingrallythatsawbitcoinpeakjustabove$73,000inmidMarch.Ithassinceretreatedtojustover$60,000

Bitcoin’s market value has nosedived by more than £$200** billion (**£158**bn) since the start of the month following a major **dump** of the world’s leading **cryptocurrentcy**. The latest **plunge** comes after a **stratospheric** rally that **propelled** bitcoin to just over **£$73,000 in mid-March. It has since retreated to just over £$60,000 amid concerns that the 18-month bull run may be winding down.

However, despite the recent downward trend, some pundits have touted the current market situation as a “perfect maelstrom” that could see it surge to unprecedented heights over the coming months. Highlighting technological advances, regulatory shifts and broader economic upheavals, analysts at crypto ATM provider Bitomat said in a market report on Tuesday that the recent bitcoin halving that slashed its supply, combined with resurgent demand spawned by US regulators approving bitcoin exchange-traded funds (ETFs), could see the cryptocurrency reach between £$130,000** and **£$220,000 by 2025.

“The years 2020 and 2021 saw record-shattering prices, institutional adoption, and significant mainstream integration, creating a perfect storm for bitcoin’s growth,” the analysts claimed. “As we peer into 2025, the convergence of these factors presents a cogent case for another major bull run.”

Other major cryptocurrencies have also seen significant price slides in recent days, with Ethereum (ETH), Ripple (XRP) and Binance Coin (BNB) all shedding more than 4 per cent over the last week. On Tuesday, the Crypto Fear and Greed Index, which serves as an indicator for market sentiment, plummeted to its lowest point since September 2023, when the price of bitcoin was around £$26,000. Dropping into the ‘Fear’ territory suggests investors have “sold off irrationally”, according to the cryptocurrency price index CoinMarketCap.

“Both in September and now, the price and index’s abrupt drop out of range has enticed buyers, laying the groundwork for gains after a prolonged slide,” Alex Kuptsikevich, a senior market analyst at FxPro, told The Independent. “However, the recovery momentum stalled Wednesday morning, raising the question of whether we’ll see a resumption of the sell off. Such a turn of events risks shattering the multi-month bullish view on bitcoin and, with it, the entire cryptocurrency market… But the fundamental scenario now remains the development of a rebound and the preservation of the long-term bull trend.”

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