Cryptocurrency investors succumb to an overnight crash that shrank the crypto market by 7.92% and knocked down $ 10,000 Bitcoin’s price.
The market value for crypto is according to $ 2.08 billion price statistics website Nomics.
In the early hours of Sunday morning, Bitcoin fell to a low of $ 52,144, a sharp drop from the high of $ 61,271 yesterday.
Bitcoin has taken down the rest of the crypto market with it. Ethereum fell 11.45% to hit the lowest price of $ 1,978, the lowest price since April 7th. By Sunday afternoon, it had dropped back to $ 2174.
Altcoins are suffering the worst today. XRP, which has recently made impressive profits after a series of victories in court for Ripple, it is 20% lower to $ 1.29, while Bitcoin Cash link term_id = “32043”[/link], which rose 25% yesterday, dropped 20% to $ 885.
The crash also caused delays on crypto exchanges. From 05:00 to 06:30 UTC, Binance reported problems placing orders. Binance has solved the problems since then.
What is behind the accident?
Unconfirmed rumors on Twitter late Saturday night about threatening U.S. government charges of cryptocurrency laundering were apparently the initial trigger.
Darius Sit, co-founder of Singapore-based crypto-trading firm QCP Capital, Decipher he sees it as the cause.
One account cited the source as security attorneys familiar with U.S. Treasury Secretary Janet Yellen’s task force. The accounts provided no further evidence.
Last week, the treasury announced sanctions against 16 groups and 16 individuals, mostly linked to Russia the use of cryptocurrencies to influence the US election in 2020.
Separately, the hash rate of Bitcoin suddenly dropped by 30% earlier this week.
Dovey Wan, founding partner of Crypto VC firm Primitive Ventures, attributes the jump to a power outage in Xinjiang province in China, the region with China’s largest Bitcoin mining operations. Authorities cut the power after accidents at three coal mines in the province.
This weekend, the crypto crash is a sobering reminder that markets are rarely going to rise forever.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.