Bitcoin fell more than $ 1000 before rebounding, the sharpest drop in the major cryptocurrency in nearly three weeks.
Around 2:15 UTC, BTC began to decline significantly as its value fell below a previous support area at around $ 18,474.
Spot volume across major exchanges also increased dramatically as bitcoin’s 24-hour range fell between $ 19,474 and $ 17,284, its sharpest decline since November 7, according to data from CoinDesk 20.
Bitcoin has since regained some lost ground and is changing hands for around $ 18,012.
While the reason for the drop isn’t entirely clear, the sell-off move comes at a time when Coinbase CEO Brian Armstrong has expressed his concerns Wednesday night about plans by the U.S. Treasury Department to attempt to track down the owners of self-hosted cryptocurrency wallets.
The crash liquidated $ 950 million worth of positions on major exchanges, derivatives data provider Bybt noted.
“BTC’s latest price drop is the first of many tests for new money to see if they have the vision and stomach to truly invest in BTC and the future of digital finance, or if they will simply repeat 2018 and withdraw from the market. , “Said Jehan Chu, co-founder and managing partner of Hong Kong-based blockchain investment and trading firm Kenetic.
I think this is a fix before going over 20k. Other long-term on-chain indicators such as BTC and stablecoin reserve say potential buying pressure still prevails so far
Most other notable cryptocurrencies also fell with Chainlink (LINK) and Cardano (ADA) suffering the worst dips across the board, losing 18.9% and 16.7%.