The cryptocurrency markets have undergone a strong correction in the past few hours. Bitcoin (BTC) and Ether (ETH) in particular have slipped to levels they haven’t hit for several weeks. We take stock this morning on what triggered investor fear.
Bitcoin (BTC) drops below $ 29,000 again
Bitcoin (BTC) has trended downward since the start of the week, but its fall accelerated overnight. Yesterday morning, it was still just over $ 35,000, but it gradually tumbled over the course of the day, before hitting its low limit tonight, at $ 28,850 :
In total, the price of Bitcoin has lost -18% in the space of 24 hours. It has since started a comeback, and is trading this morning for $ 31,700. However, its capitalization fell back under $ 600 billion .
Altcoins, including Ether (ETH), follow the trend
Altcoins accompanied the fall of the world’s largest cryptocurrency, to varying degrees. The drop in ETH was brutal, as it lost -23% over the same period. But we will note all the same that its good progression of the last days allows it to limit the fall to -3.4% over the week, where the BTC falls by -18%. After hitting $ 1,000 early this morning, Ether managed to climb back above $ 1,100.
Polkadot (DOT) is the top 10 altcoin that does the best over 24 hours, since it only loses -1% . For Bitcoin Cash (BCH), at -11%, that’s another story, and Cardano (ADA) is not doing much better, at -10%. Litecoin (LTC) and Chainlink (LINK) are trying to save the furniture, with -4% and -6% respectively.
What happened to Bitcoin and altcoins?
It will be noted that this fall could correspond to two events. On the one hand, the comments of Janet Yellen, the new secretary of the US Treasury , who has issued some criticism against cryptocurrencies, explaining:
“[Cryptocurrencies can be used to finance terrorism and facilitate money laundering . […] I think we need to determine how to encourage their use for legitimate activities while reducing their use for illegal activities. “
Second, and perhaps the biggest factor, the fall also took place as a wind of uncertainty spread. A major crypto media has raised the mayonnaise about a possible „double spending“ on the Bitcoin network . In fact, as analyst Andreas Antonopoulos explained, what happened is very common on the Bitcoin blockchain.