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- Crypto markets crash in worst single-day fall
- Fall precipitated by rumors that US Treasury is tightening controls
- Fall also blamed on blackout in China’s Xinjiang region
- Other prominent cryptocurrencies also witnessed massive falls
Cryptocurrency prices sank over the weekend after rising at dizzying speed. The worst fall was witnessed by Bitcoin (BTC-USD), which fell by 14% on Sunday, April 18, 2021.
It was one of the biggest single-day falls, and Bitcoin prices tanked from $61,530 to $52,829. It was the crypto currency’s worst single-day drop since February. Several factors catalyzed the drop, but the main reason was blamed on reports that US Treasury tightens controls to tackle financial institutions for money laundering carried out through cryptocurrency.
The bitcoin crash also blamed on blackout in China’s Xinjiang region.
The fall was also attributed to a. According to the Data website CoinMarketCap, the outage was another cause of the massive fall experienced by prominent cryptocurrency Bitcoin. The Xinjiang region allegedly powers much of Bitcoin mining or, in other words, the process by which new Bitcoins are pumped into circulation.
Bitcoin value takes a beating in major financial capitals
It was the same story in all the major financial capitals of the globe. It was pure carnage, and Bitcoin’s crash saw record liquidation, and more than one million positions were wiped out of the books. According to Bybt, $10bn in positions was liquidated. Ethereum (ETH-USD), the second-biggest cryptocurrency in circulation, fell 17% before paring losses. It is currently down 13% to $2,132. Litecoin (LTC-USD) also declined, down 24% to $252.
Bitcoin faces heat in Turkey
Central Bank of Turkey was the latest to ban cryptocurrencies and other digital assets for payments. Turkey’s central bank said that the lack of “central authority regulation” and supervision led to the ban. It further cited the possibility of parties suffering from non-recoverable losses due to lack of regulation as the main motive for the ban. Bitcoin plunged 4% after the Central Bank of Turkey ban.
Bitcoin rise fueled by better acceptance by the financial institution
Bitcoin and other cryptocurrencies’ value rose after many financial institutions started to throw their weight behind blockchain technologies. PayPal permitted its consumers to hold the cryptocurrency in their digital wallets, while US investment bank JPMorgan (JPM) also started banking Coinbase and Gemini platforms. Visa and Mastercard commenced providing services to crypto companies. All these development fuelled Bitcoin’s rise. Bitcoin values almost doubled in the last six months.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
