Bitcoin (BTC) tumbled on Tuesday, falling below the key level of $30,000 at one point, as the cryptocurrency’s recent sell-off resumed.
The price of the largest cryptocurrency by market value was last down by less than 1% at $31,139.83, according to Coin Metrics. Earlier Tuesday, BTC had fallen as low as $29,207.77, after gaining more than 4% in the previous session to trade above $31,000.
Ether has also seen some losses and it was 1% lower at $1,850.36 on Tuesday. Earlier it dropped to as low as $1,725.01.
The price declines followed a report that the Securities and Exchange Commission is investigating the possibility that the BNB token, a cryptocurrency issued by Binance, could be categorized as a security. BNB led the market-wide sell-off. It’s currently down 6%.
Bitcoin’s value has halved from its all-time high of $68,982 reached in November. The cryptocurrency has witnessed eight straight weeks of losses and dropped below $30,000 last month after the Terra collapse.
“BTC’s increased correlation with equity, stagnated transactions growth … and the emergence of ETH as a store of value rival could weaken BTC’s dominance,” Bernstein analyst Gautam Chhugani, said in a recent note.
Nonetheless, some on Wall Street believe that Bitcoin will recover. JPMorgan’s Nikolaos Panigirtzoglou said last month that he sees about 30% upside for the cryptocurrency after the recent washout.
Some Fed members have said raising interest rates could continue past this summer, Yuya Hasegawa, a crypto market analyst at Japanese bitcoin exchange Bitbank, noted.
“How much a 50bp rate hike by the Fed in May could suppress prices is still uncertain,” said Hasegawa. “So it will be difficult to open new positions until Friday’s CPI announcement. In other words, bitcoin could continue to fluctuate sideways until then, but the market should brace for impact.”