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Bitcoin falls below $28,000. Has the crypto leader lost its shine for investing?

The crypto market bled Sunday as Bitcoin plummeted below $28,000. Its counterpart, Ethereum, also crashed badly, adding to the problems. The global crypto market cap hovered around $1.1 trillion due to a huge correction in the valuation of heavyweight Bitcoin. The bears in the crypto market come after US inflation hit a fresh 40-year high.

Bitcoin is currently trading at $27,454.31, down 4.96%. After that, the coin’s market cap dropped to nearly $523.28 billion. Despite the steep decline, bitcoin’s dominance was not affected but increased. This digital coin is leading the crypto market with a 47.48% dominance, up 0.43% on the day.

In a single day, the price of bitcoin has fallen by more than $1,670. The coin has made intraday highs and lows of $28,938.19 and $27,266.28, respectively.

Meanwhile, its counterpart Ethereum plunged nearly 8% to trade around $1,460. The second largest cryptocurrency has a market cap of around $177.45 billion.

According to CoinMarketCap, the global crypto market cap has fallen 5.9% over the past day to around $1.1 trillion. However, the total crypto market volume increased by 20.46% to $85.16 billion in the last 24 hours. Meanwhile, total volume in DeFi is currently $6.87 billion — 8.07% of the crypto market’s total 24-hour volume. The volume of all stablecoins is now $73.31 billion, which is 86.09% of the crypto market’s total 24-hour volume.

Notably, Bitcoin’s weekly decline is more than 7%, while Ether is down nearly 18% over the past seven days.

While bitcoin has been trading in deep red, investors are wondering where the cryptocurrency is headed. Crypto experts believe that Bitcoin has not yet bottomed out. The current carnage is seen as an opportunity to buy Bitcoin to hedge funds against multi-year high inflation.

Crypto Rover, a cryptocurrency enthusiast, stated via his Twitter account that Bitcoin will never reach $20,000. He is long Bitcoin. He added, “Bitcoin always flips when you least expect it.”

The enthusiast said, “Bitcoin needs to close above $28.2K to stay in the falling wedge.”

Meanwhile, Dennis Porter, CEO and Founder of the Satoshi Act Fund and also Executive Producer at Compass Mining, said via his Twitter account: “If you have a 10-year attitude towards bitcoin, the price declines make you happy, the short-term gains, the dips scare you,” adding, “Zoom out, lower your time preference, and learn to appreciate these buying opportunities.”

Bitcoin’s recent precipitous collapse is not a new scenario. The downside of cryptocurrency can be unnerving for any investor, but historical data shows that Bitcoin has delivered strong gains over the long term. The sell-off is like bubbles, bursting the cryptocurrency by a wide margin and bringing in fresh corrections before the cryptocurrency takes a position for a bull run.

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