Bitcoin (BTC) saw its most terrifying red candle in history concerning the price drop in dollar valuation. The prominent cryptocurrency price went from just over $57,000 to diving at $46,000 in only a matter of hours.
Nevertheless, the bulls were still able to push back up with the daily candle close at $54,142.
Bitcoin Wiped Out of $100 Million from Market Cap.
The principal cryptocurrency began at $54,100 today and plunge to its current price of just above $48,000. The decline has wiped out more than $100 billion of bitcoin’s market value, which last week soared past $1 trillion for the first time.
The cryptocurrency sank more than 17% yesterday, its largest daily drop in a month. But, the cryptocurrency remains up about 75% for the year.
The price of the cryptocurrency tumbled down along with the U.S. stocks after markets opened yesterday. That bought the cryptocurrency down to 20%, its most significant decline for two days since the coronavirus-fueled crash in March 2020.
The price move came on substantial volume indicating high activity on the part of sellers and buyers alike. For instance, trading volume on eight major exchanges topped $10 billion. The premiums are still high compared with January levels, indicating the bulls are still dominating the market.
Analysts Say Bitcoin Might Slide Further
While a $1.5 billion investment in the cryptocurrency by electric car-maker Tesla this month helped boost Bitcoin above $50,000. It has also produced stress on its stock price as its value has become reliant on its progress in Bitcoin.
While many traders are still bullish on Bitcoin in the long term, analysts have always stated the largest cryptocurrency might have a further fall down in the coming days.
Meantime, U.S. Treasury Secretary Janet Yellen, who has signaled the need to regulate cryptocurrencies more closely, lately said that Bitcoin is incredibly ineffective at conducting transactions and is a highly speculative asset.
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