Why is Bitcoin Going Down? Cryptocurrency Price Drops amid Apparent Sell-off

SourceNewsweek
SectorFinancial Markets
CountryMiddle east

A plunge in the value of Bitcoin this week may have been sparked by crypto-investors selling off their digital currency, experts have said.The price of a single Bitcoin crashed by double-digit percentages between Sunday and Monday, marking the largest two-day dip since March 2020, Bloomberg reported. A recent rally in the cryptocurrency had culminated in the price topping $41,000 Sunday, however by Monday morning it had sank by more than 12 percent. The price of one Bitcoin was approximately $33,000 at the time of writing, according to a dashboard monitoring fluctuations in real-time maintained by CryptoCompare. The value of the decentralised crypto is famously volatile, and can shift wildly in a short space of time.

Bitcoin prices surged in recent months, seemingly linked to increased use by institutional investors and financial firms such as PayPal and Square.Broadly, the downturns on Monday resulted in around $200 billion being wiped from the total cryptocurrency market, CNBC reported. Regardless, Bitcoin was still up more than 300 percent in the past 12 months. In January 2020, a Bitcoin was around $8,000.The cryptocurrency was the center of a financial bubble in 2017, when the price spiked to almost $20,000 amid unprecedented investor hype—before crashing.Simon Peters, ...read more...