Bitcoin fell by almost 15% last night, marking the largest sell-off since February.
Reports also suggested that the US Treasury is cracking down on digital money laundering.
Data website CoinMarketCap cited a power outage in China’s Xinjiang region as a primary reason for the recent decline in price fall, which is essential to the mining activity in the country, which in turn supports the inflation of new bitcoins
ETH and Other Alts React to the Crash
Bitcoin was down by approximately $8,000 or 12% of its value by 2pm on the Sunday and it was valued at $54,900 at this time. The low price for the day was on Sunday was $53,302. Currently, it has reclaimed 9% of its losses, currently trading at $55,409.
The recent Bitcoin flash crash marked a new liquidation record, culminating in over a million contracts being erased.
Ethereum also took a significant hit, down by 17%. Litecoin has had a drop in value of 24% to $252 USD. This occurred after highly anticipated launch of cryptocurrency exchange Coinbase on NASDAQ.
The price of bitcoin has been fluctuating over the past few months due to increased government and market scrutiny. The Central Bank of Turkey recently outlawed all bitcoins and digital currency transactions in Turkey, bitcoin fell 4 percent on Friday.
The ban is in response to a lack of “central oversight” control and monitoring in the cryptocurrency and digital asset markets.
Bitcoin’s Historic Rise in 2021
A host of financial companies and well-known investors backed cryptocurrencies and blockchain technology last year, causing their prices to surge.
This has aided the rise in popularity of cryptocurrencies in recent months, especially bitcoin, which has more than doubled in value in the last six months.
After a more than 800 percent increase, the market cap of all bitcoin in existence reached $1 trillion for the first time in 2021. It surpassed Visa (V) as the world’s biggest financial provider in December.
In October of last year, Bitcoin received a significant boost in popularity after PayPal, a California-based payments network, permitted its customers to store the cryptocurrency in their digital wallets.
Meanwhile, JPMorgan of the United States began banking the Coinbase and Gemini sites, and Visa and Mastercard delivered services to crypto firms.
Bitcoin has also benefited from mainstream investor and company acceptance, such as Tesla (TSLA) and Mastercard (MA).
However, it is not the only cryptocurrency that is doing well. Ethereum, the world’s second-largest cryptocurrency by market capitalization, is now gaining traction, having just climbed to $2,488 for the first time in its existence.
Dogecoin recently stole the show from Bitcoin and Ethereum after surging more than 200 percent in 24 hours, earning it a market value of $52 billion.
Were you affected by the recent crash?