Bitcoin (BTC) sheds $8,000 as altcoins feel the heat

Bitcoin (BTC) suddenly plummeted to a three-week low of $52,148 after opening trading at $60,000.

The nosedive of the largest cryptocurrency rippled and suddenly burst the speculative bubble for different altcoins when Coinbase debuted at Nasdaq.

It can be recalled that Bitcoin had a ferocious rally of its own in the days leading to the public listing of Coinbase, shattering the $60,000 mark to set a record high of $64,801 last April 14.

Just 15 minutes into the Asian session, as of this writing, the “tragedy” occurred for the prime digital currency, leaving experts to jump to various conclusions as to what caused the fall.

The Immediate Effects

Bitcoin (BTC) is now changing hands at around $55,600, setting a 12% drop on a 24-hour basis. Ethereum (ETH), the world’s second-largest digital currency, is also down almost 13%. These two giants were not the only ones affected, though.

Altcoins like XRP, Polkadot, Litecoin (LTC), and Bitcoin Cash (BCH) have recorded a 17% to 20% drop in the past 24 hours, according to CoinDesk 20 data. Dogecoin (DOGE), currently one of the hottest cryptocurrencies in the market, is slightly doing better, nursing just a 6% loss.

As the effects are observed, stakeholders and different players seek some answers.

Possible Reason for BTC Fall

There are no exact reasons revealed that might have triggered the nosedive of Bitcoin.

There are, however, rumors that the U.S. Treasury is looking at charging many financial institutions for money laundering through the use of cryptocurrencies. No official statement has been issued regarding this matter.

A few days ago, Turkey took some drastic measures when it banned the use of digital currencies as payment. Bitcoin mining has also been affected by a recent power outage in Northwest China brought about by an accidental mine flooding.

All eyes are on this matter, as Bitcoin tries to keep its position as the most dominant force in the crypto market.

 

Image courtesy of Karolina Grabowska/Pexels

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