The price of bitcoin has plunged below $60,000 amid a market-wide crash.
And Billions has been wiped from the cryptocurrency market after bitcoin and others crashed on Monday night.
On Tuesday, cryptocurrencies tumbled with Bitcoin sliding toward the $60,000 level and Ethereum close to its lowest levels this month. And in the past 24 hours the global crypto market cap has dropped some 7% to $2.8 trillion in value.
Bitcoin having reached an all-time high of over $69,000 less than a week ago has sunk back to $60,000.
Ethereum fell more than 11 per cent of its value, and is now at around $4,180.
Other coins including Solana, Ripple, Cardano, Dogecoin and Shiba Inu also fell by nearly 10 per cent.
This crash is big and as it is well known, people invest at their own risk and cryptocurrencies are not regulated.
And All crypto investments are risky, but meme coins like Shiba Inu are particularly volatile, and you should be prepared to lose everything you invest.
What Caused the Crypto Market to Crash?
According to CoinDesk, there are two main things that could be the reasons the crypto markets crashed. Twitter’s CFO Ned Segal said that investing the company’s cash in cryptocurrencies “doesn’t make sense right now” the Wall Street Journal. Segal cited the overall volatility of crypto as the reason for shunning the digital tokens. And given the way the crypto markets are reacting to his comments, the volatility argument seems solid.
He also cited the lack of accounting rules for these assets as critical factors stopping the company from diversifying into cryptocurrencies.
Another reason cryptocurrencies are crashing today could be attributed to the infrastructure bill President Biden signed into law yesterday. As CoinDesk notes, that bill requires brokers to report traders who transact more than $10,000 worth of crypto to the IRS. However, the bill doesn’t fully define who a “broker” is and many worry it could include bitcoin miners, creating tax reporting red tape.
Saxo Bank’s chief investment officer, Steen Jakobsen said that “the weaker sentiment is subscribed to two events with China announcing again that it stands firm on regulation of the crypto industry, contemplating punitive power prices for companies that engage in crypto mining, and secondly the newly signed U.S. infrastructure bill will require new tax requirements of the industry.”