A Comprehensive Look into Bitcoin’s Price Plunge in 2024

Bitcoin, the world’s largest digital asset, plunged to its lowest value since mid-December as the speculative demand driven by hype over new Exchange-Traded Funds (ETFs) has waned.

This has left the cryptocurrency in negative territory since the beginning of 2024. The asset briefly hovered around US$40,000 before settling at US$40,843 as of 11.40am on Friday in Singapore, marking a 4% drop in the last 24 hours. Other smaller cryptocurrencies such as Ether, Solana, and Polkadot have also faced struggles.

In the previous year, Bitcoin had experienced a 157% surge due to optimism surrounding the inaugural launch of the first US ETFs that directly held the token on January 11. The digital assets market also benefited from predictions of a more relaxed monetary policy. Currently, traders are recalibrating their expectations for interest rate cuts while analysing the amount of capital…