In just two days, the value of bitcoin has dropped sharply, reaching more than 10%. So, the crypto market has lost about US $ 100 billion. So, what is really going on? Here are three facts about the decline in bitcoin prices.
3 Facts about the Lower Bitcoin Price:
1. Bitcoin Price Continues to Decline The
price of bitcoin slumped more than 6% on Thursday to US $ 31,310, falling below the US $ 32,000 level for the first time since January 11 based on data from industry website CoinDesk.
Even though the most valuable digital coin in the world had reached US $ 41,940 at the beginning of this month before falling sharply the following week. One digital asset manager said it might be a natural correction.
“Correction is a natural part of any market and very natural in the bitcoin ecosystem,” said CEO of Grayscale Investments, Michael Sonnenshein quoted from CNBC, Thursday (21/1/2021),
“From 2016-2017, we experienced 6 corrections of around 30%. or more towards new highs, “he continued.
2. US $ 100 Billion Lost Within 48 Hours of
Ether, the second largest crypto token by market value is also down about 10% from the previous two days ago. The coin hit an all-time high of US $ 1,439 on Tuesday according to Coin Metrics data.
The decline in market value of all cryptocurrencies wiped out US $ 100 billion in the past 48 hours, down from around US $ 1.06 trillion to around US $ 945 billion.
3. Needs to be evaluated
The latest Bitcoin price movement occurred after the new US Treasury Secretary Janet Yellen warned about cryptocurrencies being used primarily for illegal financing.
The former Federal Reserve chairman said the government needed to examine ways that could be taken to limit its use and ensure that money laundering did not occur through these channels.