On Thursday (21), bitcoin (BTC) plummeted to the minimum value of $ 31,000, a drop of more than 12% in a period of just 24 hours. It is the lowest value recorded in three weeks. With the major devaluation of the main cryptocurrency in the market, the total capitalization of cryptocurrencies fell by US $ 100 billion, according to CoinMarketCap.
For the first time since January 11, the price of bitcoin has gone below $ 32,000. At that time, the cryptocurrency had recorded the biggest daily drop in its history, shortly after reaching its record of almost $ 42,000.
According to the Coindesk price index, the asset reached a minimum value of $ 31,006 earlier this afternoon. At the same time yesterday, bitcoin was worth $ 35,668. The great volatility generated an uproar in the market, but specialists heard by the CNBC claim they are natural corrections.
Michael Sonnenshein, CEO of Grayscale Investments (the world’s largest cryptocurrency manager), said: “Corrections are a natural part of any market and are especially normal in the bitcoin ecosystem”.
Cryptocurrency market loses $ 100 billion
The total capitalization of the crypto sector fell by more than $ 100 billion, directly affected by the 12% drops in the price of bitcoin and more than 9% in the value of Ether (ETH), the two largest cryptocurrencies in market value.
As the CoinMarketCap platform points out, at the end of yesterday the digital assets market capitalized more than US $ 1 trillion. After today’s devaluations, that figure has dropped to a minimum of $ 900 billion.
Biden’s tenure affects bitcoin price
As soon as he took over the White House on Wednesday, Joe Biden froze all regulatory procedures that were in progress. The measure was taken so that its new economic team can reevaluate the proposals of the previous government. The cryptocurrency market celebrated a standstill in the rules suggested by FinCEN (Financial Crimes Enforcement Network) that would require brokers and digital wallets to collect personal information from users.
Meanwhile, the new US Treasury Secretary, Janet Yellen, revealed her concerns about financing terrorism through digital currencies during a hearing in the US Senate over her inauguration. “I think that many (cryptocurrencies) are used, at least in transactions, mainly for illicit financing,” he said.
Yellen’s stance on these assets raised uncertainties about the regulatory future of the market, which would be one of the factors for concerned investors to sell their cryptocurrencies today.
Report points to error in bitcoin blockchain
Another possible factor for this Thursday’s devaluation was the uproar on social networks caused by information released by the cryptocurrency research and monitoring platform BitMEX Research. The company said on Twitter that an error could have occurred in the bitcoin blockchain network, thus processing a duplicate transaction.
[1/2] There was a stale Bitcoin block today, at height 666,833. SlushPool has beaten F2Pool in a race.
It appears as if a small double spend of around 0.00062063 BTC ($ 21) was detectedhttps: //t.co/o8lz9xagYG pic.twitter.com/IEdPu8JEjt
– BitMEX Research (@BitMEXResearch) January 20, 2021
According to the platform, a user would have been able to sell his bitcoins twice, a phenomenon known as the “double spend”. However, the evidence presented is inconclusive and there was no confirmation of what happened. Even so, that was enough for the rumor to go viral on Twitter.
With information: Business Insider, CNBC