Sudden Acceleration of Sell-Off in Crypto Space: Bitcoin Witnesses 16% Downfall
- Reason for this Large Dip
With crypto market tumbling, it has been estimated that all major cryptos witnessed a decline of 13% to 26%. Bitcoin, the largest and the most popular crypto, plunged to around $42K within 24 hours. At this hour the market of Bitcoin was around $47K which is a decline of 15%.
This drag is the biggest drag in the crypto market since May 15 when the prices were down to $33,000.
Reason for this Large Dip
As per the data provided by ‘ByBIT’, Bitcoin market witnessed liquidation of $1.38 billion within an hour with $735M liquidated in Bitcoins long position when the market witnessed this sudden plunge. This gave the opportunity to bears of the market to get hold of the market. Some of the primary reasons for the dip are given below:
- Omicron, a new variant of Coronavirus, is expected to be one of the reasons for this plunge.
- Another reason for this plunge is the US Fed’s asset tapering plan which also had a significant effect on the stock market.
- The new $1.2 trillion infrastructure bill signed by Joe Biden last month, having key provisions regarding tax ramifications for crypto investors is also considered one of the primary reasons for this plunge.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investment.
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