The cryptocurrency market traders are panicked after a bloodbath wiped out more than $60 billion in just a few days. This wave of crypto market panic selling pushed prices to the lowest level in 14 months. Notably, there were no major changes in fundamental or technical factors.

Bitcoin, the largest coin by market cap, plunged to $4,200 before recovering some losses late Tuesday. It is now back near $4,500, down 29% in the past seven days. The price has dropped 75% from its all-time high at the start of the year.

This drop follows stable price movements over the past two months. Bitcoin traded around $6,500 from early September to mid-October. During that time, the total cryptocurrency market cap stayed near $220 billion.

Panic has Created the Selloff, Tom Lee Says

The global stock markets are in a bear trend, and the US markets are losing significant value over the past few weeks. Oil price is tanking, and tech stocks are tumbling. Tom Lee claims Bitcoin may be feeling the effect of a bearish trend in global stock markets.

“Markets around the world are fragile, and panic and sentiment are playing a disproportionate role right now,” Tom Lee, co-founder of Fundstrat Global Advisors, told CNBC Tuesday. “Does this mean [B]itcoin is broken? No. The use case is still there, but in the short term, panics are panics,” he added.

The analyst says panic selling and the drop below the $6,000 level triggered “stop losses” – which increased selling pressure on crypto markets.

Tom Lee also pointed out the impact of SEC decision of increasing regulations in crypto markets. The SEC has decided to ramp up legal actions against irregularities and frauds in cryptocurrency markets.

Do the Coins Found the Floor?

Bitcoin’s price hit almost the $4,200 level during the latest selloff before paring some losses. Some analysts are expecting the market to fall further in the days to come while others are seeing the dip as buying opportunity. Nigel Green, the founder and chief executive of financial advisory group deVere, claims it’s the last buying opportunity for investors in 2018.

Does crypto market panic selling play a role in creating a bearish trend? Do you believe the drop is presenting a perfect buying opportunity? Express your opinion in the comment section below.