Bitcoin price has fallen below $ 60,000 amid a market-wide crash.
Ethereum (Ether), Binance Coin and Solana (SOL) were among several other leading cryptocurrencies that also lost value, slumping between 5 and 10 percent on Tuesday morning.
The price crash comes less than a week after Bitcoin hit a new all-time high of nearly $ 69,000.
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The entire crypto market fell more than $ 200 billion to around $ 2.6 trillion overnight after briefly rising $ 3 trillion during last week’s record breaking rally.
The reason for the price crash is not immediately clear as several factors may contribute to the crash.
These include renewed crackdown on BTC mining in China, the rejection of a spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission and long-term investors who are skimming profits from their holdings.
Bitcoin’s price is notoriously volatile and analysts say it’s too early to say whether the recent slump marks the beginning of a 2020-21 bull market reversal, or whether it’s just a correction towards new all-time highs .
“The Bitcoin sell-off has brought it back to the level it was last seen 10 days ago, hardly a dip, more like a correction to the multi-month rally,” Nicholas Cawley, an analyst at the Forex firm DailyFX, told The Independent.
“The only area of concern is that the downward movement has caused Bitcoin to fall out of its multi-week upward channel, which has turned the technical outlook from positive to neutral.
“An interesting area of support is around $ 59,500 – if this stays that way, we could see Bitcoin recoup its recent losses and print a new all-time high in the coming weeks.”