As Bitcoin dropped 8%, it turned red again.
Bitcoin, the world’s largest cryptocurrency, fell 8% today to $ 36,300.
The price of bitcoin rose to $ 40,000 yesterday, shortly after President Biden announced that the US will spend $ 6 trillion next year to save the economy from the effects of the coronavirus epidemic. It is the highest expenditure by the US government since World War II.
All of the top 100 coins by market cap have dropped nearly 10% in the past 24 hours. Data from CoinMarketCap shows that the decline started at 05:00 UTC, with a steep descent at 10:00.
Ethereum also took its share of the decline
Ethereum, the second largest cryptocurrency by market cap, is currently trading at $ 2,500, down 10.21% in one day and 8.60% in one week.
The fourth largest cryptocurrency, Binance Coin, has dropped 11% since yesterday and is currently trading at $ 329. Its price fell almost 15% last week.
Although Cardano launched testnet for blockchain’s long-awaited smart contract platform, and its network will become a direct competitor to Ethereum, it fell 11.36%.
XRP fell 12% in price and became the seventh largest cryptocurrency by market cap; Cryptocurrency has been replaced by Dogecoin, which is currently the sixth largest with a market cap of $41 billion.
It is unclear what happened behind the accident. Minor losses came from the Binance Smart Chain-based decentralized exchange Burger Swap, which was hacked for $7.2 million last night, and some criticism against Bitcoin by the Bank of Japan Governor.
The reasons behind the declines earlier this month were much clearer. Tesla and SpaceX’s CEO Elon Musk discarded Bitcoin because it was environmentally unsafe, causing the price to drop from highs of about $ 64,000 last month.
Then bad news from China drove the price as low as $30,000; First, national payment institutions supported the 2017 ban against servicing crypto companies, and then the government supported crackdown on Bitcoin mining and trading.
But the causes of the current downfall are more subtle, if not so dramatic.