- Cruising along north of $60K for the past few days, bitcoin (BTC-USD) last night tumbled to just above $52K in the space of a few minutes. Some exchanges printed lows of around $50K. The move dragged down about the whole crypto sector, including popular names like Ether (ETH-USD), Binance Coin (BNB-USD), and Filecoin (FIL-USD).
- Likely the number one reason for the plunge was a bit too much frothiness surrounding last week’s Coinbase (NASDAQ:COIN) IPO, which had helped send bitcoin to a new record high just shy of $65K. Alongside, Dogecoin (DOGE-USD) – for example – rose above $0.40 – it had been trading at a fraction of a penny not long ago. The Dogecoin frenzy apparently crashed Robinhood’s crypto trading on Friday.
- As for specific news, a wholly unverified and unlikely to be true rumor shot around Twitter that the Treasury was looking into charging several financial institutions with using cryptocurrencies for money laundering.
- Others are blaming the move on a near-50% decline in the Bitcoin Hash Rate thanks to power outages in China. The hash rate is the measuring unit of the processing power of the Bitcoin network, and generally speaking, the higher, the better.
Via: Seekin Alpha