After a sharp surge during the week, the party was disrupted for Bitcoin and altcoins as the crypto market suffered a serial plunge back to $52,000 level. Ethereum dropped to $1,940, and BNB to $440.
BTC experienced the fall worth around $9,000 in hours amidst several rumors that the US Treasury Department would charge several financial organizations for laundering money with cryptocurrencies.
Another reason said to be responsible for the plunge is a hash rate crash due to a mass power outage in China’s Xinjiang province, home to a large number of miners, which began two days ago.
Metrics on TradingView showed a brutal hour of mass sell-off with Bitcoin price dropping from $59,000 to $52,000 in just minutes.
After the number one crypto lost its support at $60,000 earlier in the weekend, the crypto price was stable to an extent until when the massive sell-off began. Liquidated positions in the last 24 hours is now around $10 billion.
Rumors about the US treasury charging financial institutions for money laundering through crypto as said earlier was one of the reasons for the selloff. However, the authority is yet to confirm the news but the rumors has already had giant impact on crypto prices.
At Press time, Bitcoin price is beginning to recover. The crypto trades at $55,776 at the time of writing.
Like Bitcoin, altcoins in a pool of red
Just like it happens every time volatility is high and BTC prices goes south, all altcoin prices also begin to fall. The case remains the same in this instance.
Ethereum led this adverse trend with a substantial nosedive from over about $2,350 to an intraday low of $1,950. After this $400 dump, though, ETH has also recovered some ground and is currently trades at $2,148.
Binance Coin went from $520 to $440 before bouncing off to $470.
On a 24-hour scale all other large-cap alts have marked double-digit losses. Those include Ripple (-22%), Cardano (-17%), Polkadot (-17%), Uniswap (-17%), Litecoin (-21%), Chainlink (-17%), Dogecoin (-15%), Bitcoin Cash (-25%), and more.
Lower and mid-cap coins suffered more. Bitcoin SV (-30%) has lost the most, followed by Ethereum Classic (-25%), Verge (-23%), Horizen (-22%), Helium (-22%) Dash (-21%), Ren (-21%), EOS (-20%), Siacoin (-20%), Avalanche (-19%), OMG Network (-18%), among others.
Ultimately, crypto market cap has lost $360 billion from yesterday’s high to today’s low even though it has gained some billions back afterward. The amount gained by the crypto market at press time is not significant yet.