The last 24-hours has been weary for Bitcoin and the entire crypto market as it plunged into a deep blood bath that dipped the market below its initial $2 trillion market cap value. During the plunge, the market lost $300 billion.

Number one crypto, BTC was not left out of the disaster as it was massively dumped by bears in the market. BTC price as a result dropped below $50,000. The plunge also had a spiral effect on altcoins as all coins got hit by the plunge.

Bitcoin drops to 7-week low during plunge

Less than two weeks ago, Bitcoin looked like its bull run was not going to end as it painted a new ATH price at $65,000 during the run.

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Things began to go sideways for the coin last week Sunday as the price fell freely below $60,000 and $55,000 resistance. It continued to lose momentum from thereon. The coin tried to regain some losses afterward all to no avail. Things got worse for Bitcoin again in the last 24-hours as it lost its grip above $50,000 and plunged all the way to $48,500 (BTC’s lowest price since March).

Chart showing BTC steady price drop in the last seven days. PhotoCredit; CoinGecko

The most recent BTC plunge follows news that US President Joe Biden is set to announce a hefty new capital gains tax. However, details are still sketchy if that is the reason for the plunge. It is only clear that the crypto market indicated a significant price drop after the report.

Altcoins in a pool of RED

Ethereum leads the pack of altcoins that got hit the most during the plunge. ETH barely 24 hours ago painted a new ATH price at $2,640. It has lost more than $400 and trades below $2,200.

Binance Coin (-16%) has nosedived to $480. BNB was trading high above $600 just a couple of days ago. Ripple (-24%), Cardano (-17%), Polkadot (-18%), Uniswap (-16%), Litecoin (-18%), Chainlink (-16%), and Bitcoin Cash (-20%) are also deep in red.

Bloodbath, Crypto market overview today, Friday, PotcCredit; QuantifyCrypto

Ultimately, the cumulative market capitalization dropped by about $300 billion in a day to below $1.8 trillion.

Why BTC price drop, Analyst reacts

Petr Kozyakov, co-founder and CEO at the global payment network Mercuryo, in his daily Bitcoin price analysis article, explained reasons why BTC has fallen by $16000 from its ATH and what next to expect from the number one cryptocurrency.

In the article titled ‘Over the past day, Bitcoin has fallen by $16000 from its ATH – $64,863. What are the reasons for its fall? Will Bitcoin cross the $30.000 line? Petr noted that the fall began over the past weekend.

He explained that the drop was sparked by the Xinjiang blackout, which led to over a 40% drop in the Bitcoin hash rate eventually, BTC price.

The Mercuryo executive further notes that the current dip is fueled by the impending impact of the capital gains tax which will be paid by crypto investors.

In his analysis, he concludes that the dip may continue but will form strong support at $45,000 and begin its forward recovery back to its previous ATH.