Taking pride as the pioneer of the cryptocurrency industry, Bitcoin recently faced major turmoil as it recorded a startling plunge of 19% in the price value which eventually resulted in the biggest drop ever since February in the crypto cluster. The Bitcoin market faced a loss of over $10,000 in the distressing sell-off hustle that continued until the last week. The slid was seen in the price charts of other top-tier crypto tokens too.
According to the Bloomberg report, the price fall in the value of Bitcoin can be seen as a direct impact of the speculations doing rounds in the financial space. The rumors conveyed that the U.S Treasury might hold the collars of those involved in money laundering through virtual currencies. Another report stated that the sell-off could be due to the sudden blackout in China’s Xinjiang region that provides power to a big segment of the Bitcoin mining hub. Bitcoin faced a fall of $7,000 in an hour to bring its value down to a price of $52,810.06 on Saturday evening. Ether dropped by 7% during the weekend, giving a major hit to the crypto industry.
Interestingly, despite the unfavorable market conditions over the weekend, Bitcoin still enjoys a surge of 700% in the past 12 months span to help the BTC value reach the $1 Trillion figure. Last week, the leading crypto exchange, Coinbase, went public on the Nasdaq, and this gave a major trigger to Bitcoin as the currency touched $64,000 on the channel. The contrasting situation has once again brought the currency under the purview of financial experts.
The price of Bitcoin piled up on the charts in 2020 when the global economy faced its biggest blockage caused by the COVID-19 pandemic crisis. The crypto domain witnessed the entry of new investors, and Bitcoin became an eye-candy for the amateur clan. The continuous rise in BTC price has made analysts consider it a bubble that instills high volatility. Increase in the demand has also changed the bitcoin price prediction.
The top-ranked decentralized token has completed ten years in the industry and has managed to earn a strong community for itself. Investors, traders, and firms have started to acknowledge the potential of the crypto coin and have accepted it as a strong substitute for the traditional payments systems. The high volatility risks associated with Bitcoin are being sidelined by the users to encourage its adoption in the cluster. Financial leaders like Elon Musk, central banks across countries, and global business houses are ready to explore the fast-growing crypto market to reap the benefits of blockchain money. The support from experts is likely to push cryptocurrencies and their adoption as a payment settlement mechanism for local as well as cross-border transactions.