Bitcoin Drops to $29.9K While DeFi Hits Record $29B Locked

Yesterday was the first time bitcoin traded below $30,000 since Jan. 21.

Spot prices in bitcoin are sliding as investors get distracted by other market opportunities. Those include in the decentralized finance (DeFi) ecosystem, which hit a record level of value locked on Tuesday.

The price of bitcoin lost ground for the second straight day Wednesday. The world’s oldest cryptocurrency fell to as low as $29,298 around 15:00 UTC (10 a.m. ET), according to CoinDesk 20 data.

It was the first time bitcoin traded below $30,000 since Jan. 21. On that day, prices went as low as $28,845 before picking up and staying in a $30,000-$35,000 range until Wednesday.

“Technically, BTC is still in a descending triangle, which is a continuation pattern, showing lower highs and lower lows with currently a floor price at $29,000,” Cindy Leow, portfolio manager of multi-strategy trading firm 256 Capital Partners, told CoinDesk. “But if we close daily below [$29,000], could see another sweep of the mid-$20,000s.”

Traders appear to be distracted by other opportunities such as GameStop (NYSE: GME) and fiat currencies in the foreign exchange market, noted Jason Lau, chief operating officer for San Francisco-based exchange OKCoin. “Attention is likely elsewhere, especifically the GME drama and dollar strength,” Lau said.