As of today, Bitcoin plunges to a three-week low of $52,148. Over 1 million traders had their accounts worth about $10 billion liquidated.
The largest cryptocurrency, Bitcoin, by market value crashed from approximately $60,000 to $52,148 in 15 minutes during the Asian session. This led to the liquidation of about $4 billion worth of position in the derivative market. For now, there is no specific reason for this abrupt crash. However, some speculate that this might be as a result of the rumors that the U.S Treasury wants to charge different financial institutions for money laundering using cryptocurrency. Others think that this might be a result of speculation of an India crypto ban.
Current Market Rates
As of the time of this report, Bitcoin is gradually changing as it moves towards $55000. This shows a 12% drop on a 24-hour basis. The second-biggest cryptocurrency, Ethereum crashes down at about 13%. There are other Altcoins like XRP, Polkadot, Litecoin, Bitcoin cash, these are down about 20% in the past 24 hours. Meanwhile, Dogecoin is at a 6% loss.
A few weeks ago, a top UK financial regulator, the Financial Conduct Authority, gave out a warning on investing in cryptocurrencies. This warning states the risks that come with investing in Bitcoin and cryptocurrencies. It goes further to warn the public that their investment might be a loss.
“The FCA is aware that some firms are offering investments in crypto assets or lending or investments linked to crypto assets, that promise high returns.
“Investing in crypto assets, or investments and lending linked to them generally involves taking very high risks with investors’ money. If consumers invest in these types of products, they should be prepared to lose all their money,” said the FCA.
Despite all of these, some crypto traders view this as another typical dip in the crypto journey. We expect to see the crypto trading volume return and increase as investors are still willing to buy into the bullish run.