After rallying to an all-time high of over $68,000 on November 10, the market cap of Bitcoin and the entire crypto industry rose to over $3 trillion too, marking a new ground for the nascent industry.
However, within the space of 24 hours, all of those gains appear to have been eroded as the leading digital asset value has plummeted to around $60,000 as of press time.
Bitcoin losses over $6000 in 6 days
Within the last 24 hours, Bitcoin’s price fell sharply to less than $60,000 after the crypto coin lost around 8% of its value, according to data from CoinMarketCap. The price crash of the asset also wiped off around $100 billion from the market cap of the digital gold.
Some analysts have already ascribed the current sell-off to President Biden’s approval of the infrastructure bill which would lead to crypto-assets being taxed.
Speaking on this sudden crash, Olaoyenikan Samuel, a crypto trader and Founder of Nirvana Academy said the crash could be linked to the current emotions of traders. According to him, the crash is a normal occurrence in the industry when one considers the volatile nature of the space.
Notably, the price crash of the asset comes on the back of its recent Taproot upgrade which would see it become more private and scalable.Â
Ethereum, Binance Coin others crash too
Unsurprisingly, Bitcoin is not the only digital asset bleeding red, as other crypto coins like Ethereum, Binance coin, XRP Cardano, and others have followed suit and have lost between 7-10% of their values too.
This means that the second largest crypto asset by market cap, Ethereum, after rallying to new highs is trading below $4300. Though its value is still above the $4k mark, many analysts and crypto enthusiasts expected that the asset would be testing the $5k level and not retesting the $3900 benchmark.
Other assets like Solana crashed to $224, Binance coin dropped to $586, Polkadot bled to around $41. Even popular meme coins like Dogecoin and Shiba Inu were not exempted from the price crash as their value crashed by 9% and 7% respectively.
