Bitcoin had a strong start to the month, gaining 43% in the first two weeks of trading. Bitcoin started the week looking for a direction, with low trading volume and dwindling exchange inflows.
On March 23, Bitcoin (BTC) fell to its lowest level in two weeks, owing to concerns that bulls were losing interest in buying. Tuesday's dip was the latest blow to the 2021 bull run this month, bringing the possibility of a $50,000 test ever closer, with buyer support on exchanges looking dangerous.
Bitcoin (BTC) was trading around $54,680, down from around $53,715, its lowest level since March 16.
According to blockchain analytics company Glassnode, there were less than 2.44 million BTC available on exchanges as of March 21, the lowest amount since August 2018.
Millions of retail investors have jumped on the Bitcoin bandwagon, thanks to startups that are attempting to make Bitcoin investing simple.
In the last few hours, the price has dropped to as low as $54,669, following remarks by US Federal Reserve Chair Jerome Powell. During a virtual panel discussion on digital banking hosted by the Bank for International Settlements, Jerome Powell stated that cryptocurrencies are "not really useful stores of value."
According to Bitstamp exchange data, the largest cryptocurrency dropped 5.8% in the past 24 hours, its biggest daily drop since February 23.