Crypto Sell-Off – BTC COLLAPSE!
Folks, if you were excited about crypto last week, things might look a little different this week. Just last week, cryptocurrencies, particularly the big one, Bitcoin, had reached all-time highs, topping out at well over $41,000 per BTC. This had investors and traders foaming from the mouth due to the seemingly great profit opportunities this provided.
In terms of crypto, BTC has seen massive gains over the past months, several hundred percent in fact. However, things have changed very swiftly since last Friday, for the worse. It appears as though a huge crypto sell-off is in the works, and that Bitcoin and altcoins alike are currently plummeting in value. Let’s take a look to see what this means for traders and investors.
A Crypto Collapse
What is interesting to note is that just last Wednesday, the crypto market as a whole reached a total value of $1 Trillion USD, the highest it has ever been by far. This appeared to be quite promising for traders and investors alike. However, massive crypto market volatility, combined with several other factors has caused a massive collapse.
Since Friday, so just three days ago, the value of the crypto market as a whole plummeted by a whopping $170 Billion USD. Among other things, the events at the US Capitol the previous week could be to blame. Although the future is very uncertain, economists are warning that crypto investors may lose it all if they hold onto their cryptocurrencies.
A Bitcoin Sell-Off
What seems to be fueling the current collapse of the cryptocurrency market is the massive sell-off that Bitcoin has seen in the last couple of days, particularly on the US based exchange, Coinbase.
Late Sunday night, so just yesterday, Bitcoin was worth $40,800 per coin. Now, just mere hours later, Bitcoin plummeted in value by roughly 20%, falling by over $8,000 to just over $32,000.
People, a 20% drop in a single day is massive. It also appears as though Bitcoin miners are currently panic selling, which combined with a highly over-leveraged market is now having disastrous consequences for anyone holding onto Bitcoin.
Ethereum Plummets in Value
Another one of the big players in the cryptocurrency industry, Ethereum, has also seen a sharp decline in value over the past 24 hours. Ethereum was trading at roughly $1,300 on Sunday, and now, on Monday, it is trading at $950. This marks a 24% decrease in value in just the last day.
Russian Banks Cracking Down
The Russian government has just announced that Cryptocurrencies could no longer be used as a form of payment. Moreover, as of today, the Russian government also announced that the nation’s central bank now has the power to freeze all accounts which are suspected to be connected to cryptocurrencies.
The Crypto Crash – Final Thoughts
Although nothing is set in stone as of yet, one thing is for sure, and it’s that a massive amount of value has disappeared from the crypto market in just the last 24 hours. The market as a whole remains volatile, and what this means for investors is yet to be seen.