Bitcoin dropped

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Why Bitcoin dropped below $51,000 late Saturday night, a cause to panic

Why Bitcoin dropped below $51,000 late Saturday night, a cause to panic

 Bitcoin dropped – This could be referred as one of the most tragic moments for the world most popular crypto (bitcoin) as things really went South late Saturday night, closest to the March 2020 black Thursday.

The price of bitcoin plummets to a world record low following three key sources of negative trends

  • Forced liquidations of long orders
  • Sell-off triggered by a string of bad news
  • Volatility likely to persist all through the week

There was a case of Money Laundering report

Bitcoin price plunged to a lows of $50,900 on Binance and recorded $51,300 on Coinbase at about 11:35 pm on Saturday night.

The initial drop of 12.3% was triggered by a tweet which claimed the U.S treasury was investigating financial institutions for unlawful use of crypto.

Citing scarce or relatively no official reports on such claim, prominent crypto lawyer Jake Chervinsky contested the authenticity of the report, which in his suggestion admits the U.S treasury doesn’t charge money laundering.

Despite this, pressure built up in the market all through.

Recall, mining hashrate dropped by 40% after an incident in Chinese coal mine halted operations, this change bred concern around Chinese dominance across the market.

Then comes rumors of a sell-off coin shares by Coinbase executives lately, this has further weaken the spirited market.

In a report, Crypto randy claimed that a chief product officer and financial officer at the exchange sold nearly all their shares on Wednesday.

In a contrary report, crypto expert Meltem Demirors, CFO at Coinbase shares, states that Coinbase executives merely hedged their holdings, considering to be somewhere above 90%.

This combined with the U.S treasury report set the crypto market on a negative part.

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