Bitcoin Price Tanks Below $30K, Yellen Comments Could Be One Reason

Bitcoin cryptocurrency
Bitcoin cryptocurrency

The price of Bitcoin plunged below $30,000 on Thursday. The most valuable cryptocurrency experienced a bull run last year and earlier this month it even reached an all-time high of more than $41,000

However, Bitcoin’s price has been sliding lately. Based on data from Coindesk, the cryptocurrency dropped to $29, 467.97 at around 5:00 p.m. PST. The cryptocurrency lost around $100 billion in market value.  Based on that trading price, it lost more than 30% from its record price of $41,940 this month.

There is no particular reason for the cryptocurrency’s latest price decline. Billionaires such as Chamath Palihapitiya and Ricardo Salinas Pliego as well as a number of institutional investors have been bullish on the future of Bitcoin. They predicted that the cryptocurrency will continue to trade higher as many investors see it as a hedge against inflation and political risk.

What caused the Bitcoin price drop?

There is a possibility that some investors sold their short-term positions in Bitcoin to make a profit. Last week, Guggenheim Chief Investment Officer Scott Minerd said the parabolic rise of Bitcoin is unsustainable in the near term. He encouraged investors to sell now to make money.