The cryptocurrency market took a nosedive overnight, knocking over $400 off of Bitcoin’s price. Why? In the world of crypto, it’s anyone’s guess.
So what’s the damage this time? In the past 24 hours, and at the time of writing, Bitcoin dropped $432, from a peak of $9,163 USD to lows of $8,731; Ethereum dropped $21, from $249,98 to $229; and XRP dropped $0.01, from $0.24 to $0.23, according to data from metrics site CoinMarketCap.
Top coins tied to Bitcoin didn’t do much better. Bitcoin Cash lost 7.4% of its value; Litecoin shed $6.18; and Bitcoin SV lost 6.25%. And other coins did even worse: the value of Tezos fell by 9.65%; and Binance’s crypto, BNB, fell by 8.69%.
But according to Whale Alert, a Twitter account that tracks large trades, there hasn't been any significant movements in the past 24 hours to explain the sudden lull.
This week, Chinese exports fell by 17%, the Fed cut interest rates by half a percentage point, and last week, the US stock market fell the most in a single day since the 2008 financial crisis. In summary, the financial outlook worldwide looks bleak.
In recent weeks some commentators have argued that Bitcoin et al is a safe haven to weather the storm in global markets.
Even Coinbase went so far to argue that Bitcoin was a superior store of value to gold in times of currency devaluation in a recent blogpost.
Whichever way you look at it, the markets, be they fiat or crypto appear to be struggling. In the past month Bitcoin's price has been trending downwards, taking other currencies with it.
Hold on to your hats, it's going to be a bumpy ride.