At its low of the day, Bitcoin fell more than 11% to about $28,911, below the $29,026 level where it ended 2020, according to Coin Metrics.
Technical analysts had been watching the $30,000 level as a key support level on the charts after the cryptocurrency had fallen to near that low during its May crash.
If it’s really breached, $25,000 is the next big level of support,” Novogratz said.
Bitcoin has been struggling to reclaim its highs from earlier in the quarter.
It’s been on a rollercoaster ride since then, battered by a stream of headlines out of China, where regulators have imposed new restrictions on energy-intensive mining and ordered financial institutions like Alipay to stop doing business with crypto companies.
With Tuesday’s losses, bitcoin has been cut in half rom its all-time high of more than $64,000 in mid-April, taking other cryptocurrencies along with it.
Crypto investment product providers, such as CoinShares, Grayscale and Bitwise, are experiencing their sixth consecutive weeks of outflows, though some providers are seeing inflows, according to CoinShares.