Bitcoin (BTC) under $29,000 and Ether (ETH) at $1,000 – What happened last night?
3 minutes of reading Posted by Marine Debelloir. This article was last updated on January 22, 2021 at 9:27 AM.
Cryptomoney markets have undergone a strong correction in the last few hours. Bitcoin (BTC) and Ether (ETH) in particular have deviated to levels they had not reached for Crypto Revolt several weeks. This morning we take stock of what has triggered investor fears.
Bitcoin (BTC) prices have been on a downward trend since the beginning of the week, but their fall accelerated overnight. Yesterday morning it was still just over $35,000, but it gradually fell over the course of the day before hitting its low of $28,850 overnight:
In total, the price of Bitcoin has lost -18% in the space of 24 hours. It has since started to rise, and is trading this morning for 31,700 dollars. Its capitalisation has however fallen back below 600 billion dollars.
Altcoins, including Ether (ETH), follow the trend
Altcoins accompanied the fall of the largest cryptomony, to varying degrees. The fall of the ETH was brutal, as it lost -23% over the same period. But it should be noted that its good progression of the last few days allows it to limit the fall to -3.4% over the week, where the BTC falls by -18%. After hitting 1,000 dollars early this morning, the Ether managed to climb back above 1,100 dollars.
Polkadot (DOT) is the Altcoin of the top 10 which is doing best over 24 hours, losing only -1%. For Bitcoin Cash (BCH), at -11%, it’s a different story, and Cardano (ADA) is not doing much better, at -10%. Litecoin (LTC) and Chainlink (LINK) are trying to save furniture, with -4% and -6% respectively.
What happened to Bitcoin and Altcoins?
It should be noted that this fall could correspond to two events. On the one hand, the comments of Janet Yellen, the new US Treasury Secretary, who made some criticisms against cryptomoney, explaining :
„Cryptomoney can be used to finance terrorism and facilitate money laundering. I think we need to look at how to encourage their use for legitimate activities while at the same time reducing their use for illegal activities. »
Second, and perhaps the biggest factor, the fall also took place at a time when a wind of uncertainty was spreading. A major crypto media outlet raised the mayonnaise about possible „double spending“ on the Bitcoin network. In reality, as analyst Andreas Antonopoulos explained, what happened is very common on the Bitcoin blockchain.